In the latest development of the FTX saga, the US Department of Justice (DOJ) has called Sam Bankman-Fried’s planned defense “irrelevant” in a new court filing submitted late Monday.
The DOJ lawyers argued that SBF’s claims that FTX lawyers approved alleged fraud while he was CEO should be disregarded by the court. The DOJ filing requests that SBF be ordered to provide more disclosures and information through pretrial discovery.
“If the defendant does not provide additional disclosures, the court should preclude irrelevant, confusing, and prejudicial questioning, evidence, and arguments about the involvement of attorneys,” the DOJ filing stated.
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DOJ calls SBF’s defense irrelevant
SBF’s legal team previously claimed that FTX lawyers led the former CEO to believe he was acting lawfully. They argue that “reliance on counsel is relevant to the question of intent.”
But the DOJ neatly rejected this planned defense strategy. Instead, it is clear they will not entertain SBF’s finger-pointing at other FTX leadership and lawyers.
The collapse of FTX, once a $32 billion crypto giant, was one of the most dramatic downfalls in cryptocurrency history. Millions of customers faced severe losses when the exchange crumbled. It remains unclear whether they will ever regain access to their lost funds.