DOJ: SBF's Compliance With Other Regulations Isn't Evidence Of General Good Faith

The U.S. Department of Justice (DOJ) explained in a letter that existing laws are sufficient to charge disgraced FTX FTT/USD founder Sam Bankman-Fried for his alleged involvement in fraudulent activities.

The DOJ's letter to Judge Lewis Kaplan highlighted the defendant's request for reconsideration regarding the court's prior decisions.

The government firmly believes that the evidence against Bankman-Fried, or SBF, particularly concerning the misappropriation of customer funds and their subsequent use in political campaigns via straw donors, is clear and compelling.

The DOJ's stance comes as the crypto industry awaits the much-anticipated Benzinga's Future of Digital Assets conference on Nov. 14, where such regulatory matters are expected to be a focal point of discussion.

The DOJ clarified that while they will present evidence of Bankman-Fried's alleged straw donor scheme, they will not argue that such a scheme is unlawful under election laws.

Instead, the evidence will be used to demonstrate that the funds were used in ways inconsistent with his representations to customers.

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Furthermore, the DOJ addressed the defendant's argument about the relevance of regulations in the US or FTX.US's compliance with them.

The government's position is that the absence of specific regulations does not negate the fact that money was entrusted to the defendant's care by victims.

The DOJ also emphasized that the defendant's compliance with other regulations or laws does not serve as evidence of his general good faith.

The letter also touched upon the defendant's philanthropic efforts, stating that while the government has no objections to the defendant presenting evidence regarding charitable activities, it should be presented for a proper purpose and not as proof of character.

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