Bankman-Fried’s Lawyers Challenge Core of Fraud Case, Questioning Fiduciary Ties Under English Law

Lawyers for Sam Bankman-Fried are seeking to instruct the assemblage that nary spot oregon fiduciary narration existed betwixt the crypto speech and its customers, a cardinal portion of the prosecution’s fraud case.

Bankman-Fried’s Attorneys Question Trust Ties

In an addendum to earlier requests, Sam Bankman-Fried‘s attorneys reason that nether English law, which governs FTX’s presumption of service, nary spot narration arose betwixt FTX and users. “The Terms of Service bash not usage the words ‘trust,’ ‘trust property,’ oregon ‘beneficial interest,'” the filing states. It adds that immoderate connection astir fiduciary duties expressly disclaims specified a relationship.

The defence aims to antagonistic the government’s assertion that Bankman-Fried “engaged successful a strategy to defraud customers” by misappropriating deposits. Prosecutors allege FTX lawsuit funds were improperly diverted to Bankman-Fried’s trading steadfast Alameda Research.

However, according to the defense, “subjective intentions are irrelevant” successful determining if a spot exists nether English law. They contend it is based solely connected interpreting the contractual presumption objectively. Representations extracurricular the declaration besides cannot found a spot narration retroactively.

“Briefly stated, a ceremonial trust, called an explicit spot successful England, is the ineligible narration created erstwhile assets are placed by idiosyncratic nether 1 party’s power for the payment of different oregon for a peculiar purpose,” Bankman-Fried’s lawyers contend. The attorneys noted:

The specified information that a idiosyncratic subjectively expected, understood oregon believed that a trust, fiduciary relationship, oregon akin narration existed does not make specified a relationship.

The assemblage instructions travel Bankman-Fried’s caller time connected the witnesser basal connected Monday wherever helium had a hard clip recollecting statements and circumstantial decisions. The erstwhile FTX CEO faces much than 100 years successful situation for the charges levied against him, and helium has pleaded not blameworthy to each of the charges.

What bash you deliberation astir the assemblage requests from Sam Bankman-Fried’s lawyers? Share your thoughts and opinions astir this taxable successful the comments conception below.