The US Department of Justice (DoJ) has responded to Sam Bankman-Fried’s legal team’s claim that the FTX founder is not guilty because of the lack of crypto regulation in the United States.
The trial that will decide the fate of Bankman-Fried has gotten underway. While the jury selection process is ongoing, the DoJ has made a court filing, answering a request for clarification and reconsideration.
DoJ Challenges Sam Bankman-Fried’s Argument
According to the DoJ court filing, Bankman-Fried’s legal team’s argument about the absence of crypto regulation in the US might confuse the jury. The FTX founder’s legal team stated that “he is not guilty because FTX was not regulated in the United States, and he followed the rules with respect to FTX US.”
Government lawyers expressed the following view:
“Indeed, the suggestion that there are not any laws or regulations prohibiting cryptocurrency exchanges from using funds originating in customer deposits for their own purposes is inaccurate.”
The DoJ argues that there are regulations in place that prohibit the misappropriation of customers’ assets. Sam Bankman-Fried faces accusations of using customers’ funds to support his Alameda Research hedge fund.
Read more: Crypto Hedge Funds: What Are They and How Do They Work?
A Nansen report shared with BeInCrypto reveals that there were frequent large transactions between FTX and Alameda wallets, although both entities claimed to be independent.
Previously, the DoJ objected to Bankman-Fried’s request to limit the charges about misleading advertisements. The DoJ stated that the request could not stand because the line between FTX and FTX US’s business was blurry.
The trial for Sam Bankman-Fried started yesterday. If the jury finds him guilty of all the charges, he might be sentenced to over 100 years in prison.
Read more: Who Is John J. Ray III, FTX’s New CEO?
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