- Bankman-Fried argues documents may prove he acted on legal advice.
- The charges involve the alleged misappropriation of billions in customer funds.
- Prosecutors dismiss Bankman-Fried’s argument as meritless, affirming their accusations.
In the latest twist of the high-stakes legal battle, Sam Bankman-Fried, the founder of the now-defunct FTX cryptocurrency exchange, is resorting to an unconventional strategy. According to recent court filings, Bankman-Fried requests access to documents from the legal advisory firm that once served his platform.
Specifically, the former crypto CEO is seeking documents related to Fenwick’s advice on critical aspects of the government’s case. These include disappearing messaging services and the failure to register correctly with regulators, both issues central to the government’s charges.
Based on reports, Bankman-Fried contends these documents could bolster his defense, possibly demonstrating his actions were advised legally. He maintains he did not consciously violate the law. This places the onus on Manhattan federal prosecutors to demonstrate that he was aware of his illegal conduct.
Bankman-Fried Accused of Swindling Billions
The charges against Bankman-Fried center around allegations that he stole billions of customer funds to offset losses in his hedge fund, Alameda Research. The domino effect of his high-stake cryptocurrency gambles led to the subsequent collapse of both Alameda and FTX last year.
This saga took an unexpected twist when Bankman-Fried requested prosecutors release documents containing Fenwick’s legal advice. This evidence, he argues, would showcase that he acted under guidance from Fenwick and thus believed his actions were legal.
Yet, the prosecutors are not swayed. They label his assertions as “meritless,” arguing that his purported crimes fall squarely within the violations he’s accused of. In conclusion, the trial, scheduled for October 2nd, will undoubtedly be a watershed moment in the history of crypto legal dramas.