Sam Bankman-Fried’s Attorneys Submit Jury Instructions
In a letter to Judge Kaplan, Sam Bankman-Fried’s attorneys have submitted proposed jury instructions and supporting authorities regarding the meaning of the Terms of Service. They argue that FTX’s relationship with its customers, as stated in the Terms of Service, is governed by English law, which does not establish a trust or fiduciary relationship. Therefore, they believe that the government’s fraud charges are unfounded.
Attorneys Argue Against Fraud Charges
The defense team emphasizes that for misappropriation to occur, there must be a trust or fiduciary relationship between FTX and its customers. They also provide court cases under English law to support their argument. This submission is their final attempt to prove that Sam Bankman-Fried followed the Terms of Service and did not commit fraud.
Prosecutors Cross-Examine Sam Bankman-Fried
During cross-examination, prosecutors question Sam Bankman-Fried’s credibility and misleading conduct. While he claims to have no recollection of certain events related to misappropriating customer funds and decision-making at Alameda Research, he admits to being shocked by an $8 billion loan from FTX customer deposits to Alameda. This suggests his awareness of the seriousness of the situation despite his denial.
Hot Take: Defense Argues No Trust Relationship
Sam Bankman-Fried’s defense team maintains that FTX’s Terms of Service, governed by English law, do not establish a trust or fiduciary relationship with customers. They contend that the government’s fraud charges are baseless due to this lack of relationship. However, during cross-examination, prosecutors challenge Bankman-Fried’s credibility and highlight his awareness of questionable financial transactions. The outcome of the trial will ultimately determine whether the defense’s argument holds up in court.
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