FTX-SBF Is Valuable Without US Crypto Rules, DoJ Says

The United States Department of Justice (DOJ) submitted a petition to the court on October 4, stating that the lack of crypto regulations in the United States is no obstacle to the criminal charges against the former CEO of FTX, Sam “SBF” Bankman-Fried.

The DOJ's letter was submitted in response to the defendant's request for clarification and reconsideration of the allegations related to the misappropriation of funds in FTX. SBF's lawyers argued that their client was not guilty because FTX was not regulated in the United States and FTX followed US laws.

The DOJ called this argument irrelevant, arguing that even though the existence of a law may be necessary to establish a legal obligation, it does not affect the defendant's victims paying him. The DOJ's claim that the defendant has no regulations related to the use of client funds is false because there are laws against it.

The DOJ went on to say that existing laws prohibit companies from stealing customer property, and the defendant was charged with the same. He also said that the accused had misrepresented customers and cheated them of money.

RELATED: What Has Sam Bankman-Fried Been Doing In Jail?

The DOJ argued that a defendant's alleged wrongful acts or omissions are immaterial in the absence of “clearly applicable laws or regulations.” Whether there is a rule or not.

SBF is currently facing charges of wire fraud and misappropriation of customer funds, among other charges. The former CEO of FTX is currently in prison for violating bail conditions and attempting to influence witnesses. However, he appealed for bail before the trial – to no avail. SBF's legal team cited that lack of internet connectivity hampered its defense and also lacked any vegan food options.

SBF appeared before a jury on the first day of October 3, with reports suggesting the trial could last up to six weeks.

Magazine: Can you trust crypto exchanges after the FTX collapse?