Prosecutors Seek to Limit SBF’s Defense Arguments About Regulations
The Department of Justice (DOJ) has requested the judge in Sam Bankman-Fried’s criminal case to restrict certain defense arguments regarding financial regulations. Prosecutors believe that SBF should not be allowed to claim innocence based on the lack of regulation in cryptocurrency exchanges. They also argue that his compliance with U.S. laws cannot be used as evidence of good faith.
Prosecutors’ Request to Limit Trial Evidence
In a recent letter, federal prosecutors asked U.S. District Judge Lewis Kaplan to reconsider or clarify an order that limits trial evidence. They want to prevent SBF from arguing that his actions were legal due to the lack of oversight in FTX. Prosecutors stated that this claim is misleading and inaccurate since criminal laws still prohibit misappropriation of customer assets.
Irrelevance of Regulation Absence and Compliance with U.S. Rules
Federal prosecutors emphasized that the absence of regulation is irrelevant to whether money was entrusted to SBF by his victims. They believe that mentioning the absence of regulation may confuse the jury into thinking there must be a regulation for misappropriation to occur. Additionally, prosecutors argued against SBF citing his compliance with U.S. rules for FTX, stating that general legal compliance does not prove innocence on specific charges like fraud.
Restrictions on Rebutting Evidence and Presenting Character
The prosecution also wants to limit SBF from rebutting their evidence concerning FTX’s bankruptcy, as they believe it is directly relevant to the alleged fraud conspiracy. They have requested clarification from the judge regarding SBF’s ability to present “admissible evidence” about philanthropy without using it to enhance his character.
SBF’s Ongoing Trial and Response
SBF’s trial on fraud and other federal charges began on October 3, 2023, with jury selection continuing. As of now, SBF’s lawyers have not yet responded to the prosecution’s motions.
Hot Take: Prosecutors Aim to Limit Defense Arguments in SBF’s Criminal Case
The Department of Justice has filed a request to restrict several defense arguments made by Sam Bankman-Fried in his criminal case. Prosecutors aim to prevent SBF from claiming innocence based on the lack of regulation in cryptocurrency exchanges and using his compliance with U.S. laws as proof of good faith. They argue that the absence of regulation is irrelevant to whether money was misappropriated and that general legal compliance does not prove innocence on specific charges. Additionally, prosecutors seek limitations on rebutting evidence about FTX’s bankruptcy and presenting character evidence. SBF’s trial is ongoing, with no response from his lawyers yet.
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