Prosecutors argue that ‘effective altruism’ is not enough in the Bankman-Fried case.
In the Sam Bankman-Fried fraud case, prosecutors asked the judge to inform the jury that the defendant's claim that he was an effective accomplice should not be used as a legal defense. Bankman-Fried is accused of misappropriating billions of dollars in withdrawals from FTX clients for personal purposes such as political contributions, real estate and investments.
In a letter filed last Thursday, prosecutors said Bankuman Freed's legal counsel tried to argue that he should not be charged with defrauding clients with the intention of paying them for FTX growth and profitable investments. He explained that this argument is irrelevant and does not justify the allegations of fraud.
Bankman-Fried's defense tried to portray him as a philanthropist, with a sincere commitment to creating a positive global impact. They argue that the endorsement of effective altruism reflects its core motivations, a philosophical movement that promotes highly influential means of helping others, such as charitable contributions or pursuing influential work.
Prosecutors argue that effective benevolence cannot be used as a defense against fraud. They describe it as “an unusual philosophy about the ethics of cheating and thievery.” In their view, this ideology has no effect on men in the mental state necessary to order cheating.
Cointelegraph has been reporting on the trial on the ground in New York, which is now in its third week. During the trial, the prosecution presented several witnesses, including the former CEO of Alameda Research, Carolyn Ellison; Nishad Singh, former Chief Engineering Officer of FTX and Alameda; and Gary Wang, one of the co-founders of the now defunct FTX.
According to their statements, Bankman-Fried directed them to obtain funds from FTX customers without their knowledge or consent for purposes unrelated to FTX's regular operations.
Related: Latest Update – Former FTX CEO Sam Bankman-Fried trial [Day 12]
They also claim that Banman-Fried was aware of the risks and consequences of his actions. He also said that he actively hid these actions from regulatory bodies, auditors and the public. As evidence, they introduced emails, messages, spreadsheets and bank records that fully reveal Bankman-Fried's deceptive scheme.
Finalization of jury instructions is expected next week, followed by closing arguments. Next, the jury will begin deliberations to determine Bankman-Fried's legal fate.
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