DOJ reaffirms that ignorance does not exempt from responsibility.
The US Department of Justice (DOJ) asserted that the absence of explicit cryptocurrency regulations in the United States does not invalidate the criminal charges against Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX.
On October 4th, the DOJ filed a motion responding to Sam Bankman-Fried's legal team's request to reconsider FTX customer fund misallocation charges.
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The defense claimed that because FTX was not under US jurisdiction and Bankman-Fried had adhered to the guidelines for FTX US, the charges connected to FTX's international operations should not be applicable.
Dismissing this reasoning, the DOJ asserted that Bankman-Fried made significant misrepresentations to his customers and even took money from them. Therefore, the Justice Department maintained that the lack of comprehensive crypto-specific regulations does not exempt someone from fraud allegations.
Whether or not there is explicit regulation, the DOJ emphasized that wire fraud allegations are fundamentally a "guilty act," known in legal terms as "actus reus."
Sam Bankman-Fried, currently imprisoned for breaching bail conditions and attempting to sway potential witnesses, has yet to successfully appeal for bail. His lawyers have cited various challenges, including a lack of internet access for defense preparations and the unavailability of vegan meal options in prison.
The embattled former CEO stood before a jury for the first time on October 3rd. It is believed that the trial may take up to six weeks.
The US Department of Justice firmly believes that the absence of specific cryptocurrency regulations in the United States does not protect Sam Bankman-Fried from the legal repercussions of his actions. This case is increasingly being seen as a landmark for how existing US laws can be applied to crypto enterprises and their operators, irrespective of the industry's regulation level.
