Undermining the Fraud Indictment: English Law, Autonomy, and Credibility

Sam Bankman-Fried's defense team has submitted proposed jury instructions and supporting authorities to Judge Kaplan, contesting the U.S. DOJ's fraud indictment against the defendant. The defense attorneys argue that FTX's relationship with its customers, as governed by the Terms of Service, was under English law, which does not establish a trust or fiduciary relationship. They assert that the fraud charges brought by the government are unfounded.

Terms of Service and English Law

The defense team emphasizes that FTX's Terms of Service, which governed the relationship between FTX and its customers, were subject to English law. According to the proposed jury instructions, the absence of a trust, fiduciary relationship, or similar relationship between FTX and its customers undermines the government's claim of misappropriation. The defense team supports this argument with supporting documents citing court cases under English law.

SBF's Conduct and Decision-Making

The defense team's submission also highlights the testimony of witnesses from Sam Bankman-Fried's internal team. They assert that Bankman-Fried had the autonomy to make his own rules and decisions regarding operations at FTX and Alameda Research. This suggests that any alleged misappropriation or misleading conduct should be evaluated in the context of Bankman-Fried's authority and decision-making power.

Prosecutors' Cross-Examination

During the cross-examination of Sam Bankman-Fried, prosecutors focused on challenging his credibility and accusing him of misleading conduct. While Bankman-Fried claimed to have no recollection of certain events related to misappropriating customer funds and decision-making at Alameda, he did admit to being shocked upon discovering an $8 billion loan from FTX customer deposits to Alameda. This admission indicates his awareness of the seriousness of the situation, despite his denial of any wrongdoing.

Conclusion

Sam Bankman-Fried's defense team's submission of jury instructions and supporting authorities aims to undermine the government's fraud indictment. By highlighting the absence of a trust or fiduciary relationship under English law and emphasizing Bankman-Fried's autonomy in decision-making, the defense team seeks to cast doubt on the validity of the charges. The outcome of this legal battle will determine the future of Bankman-Fried and the perception of FTX's business practices.