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 trade 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 could be flawed for the protection to mislead the jury {that a} cryptocurrency trade 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 may solely use the argument that different crypto exchanges had been “pooling and reallocating their prospects’ funds” if he may 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 prospects. The putative ‘absence of clearly relevant legal guidelines or laws’ is irrelevant as to whether the defendant made materials misstatements or omissions. Accordingly, the existence or absence of regulation will not be related to proof of the actus reus of the wire fraud fees.”
The U.S. crypto regulatory panorama has come beneath constant criticism from a number of stakeholders over the shortage of clear authorized frameworks. A number of crypto corporations, together with Ripple and Coinbase, have led crusades urging Congress to create legal guidelines tailor-made to the trade.
SBF trial started yesterday, Oct. 3, and is anticipated to final for the following six weeks. He faces seven major fees, 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 put up SBF Trial: Bankman-Fried can’t depend on US unclear crypto regulatory regime in trial, DOJ says appeared first on CryptoSlate.
