The U.S. Division of Justice (DOJ) has argued that FTX founder Sam Bankman-Fried can’t depend on the nation’s lack of clear regulatory frameworks for the rising business in his protection.
In an Oct. 4 letter to Decide Kaplan, the DOJ wrote that there are prohibitions on misappropriation of buyer property, that are the legal guidelines SBF violated. So, it might be incorrect for the protection to mislead the jury {that a} cryptocurrency alternate can solely be discovered responsible if the legal guidelines say that such platforms can by no means contact buyer funds.
In addition to that, the DOJ furthered that SBF might solely use the argument that different crypto exchanges had been “pooling and reallocating their clients’ funds” if he might set up that he knew about their practices and believed they had been appearing lawfully.
The DOJ concluded that:
“The Authorities alleges that the defendant not simply misappropriated buyer cash, however made materials misrepresentations to clients. The putative ‘absence of clearly relevant legal guidelines or rules’ is irrelevant as to whether the defendant made materials misstatements or omissions. Accordingly, the existence or absence of regulation is just not related to proof of the actus reus of the wire fraud expenses.”
The U.S. crypto regulatory panorama has come underneath constant criticism from a number of stakeholders over the shortage of clear authorized frameworks. A number of crypto companies, together with Ripple and Coinbase, have led crusades urging Congress to create legal guidelines tailor-made to the business.
SBF trial started yesterday, Oct. 3, and is predicted to final for the following six weeks. He faces seven main expenses, together with wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit cash laundering, and conspiracy to defraud the Federal Election Fee.
The submit SBF Trial: Bankman-Fried can’t depend on US unclear crypto regulatory regime in trial, DOJ says appeared first on CryptoSlate.
