Prosecutors in the ongoing fraud trial of Sam Bankman-Fried have urged the court to dismiss his defense's argument that his belief in effective altruism could serve as a valid justification for his actions.
Bankman-Fried faces charges of diverting billions of dollars from FTX customers for personal expenditures, such as real estate, political donations, and other investments.
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In a formal letter submitted to the court on October 19th, prosecutors took issue with Bankman-Fried's defense strategy, which positions him as an effective altruist who intends to pay back customers through FTX's future growth and profitability. They argue that the defense is irrelevant and insufficient to counter the serious fraud allegations.
Sam Bankman-Fried's legal team has been working to frame him as a committed philanthropist dedicated to positive global change. They argue that his support of effective altruism, a philosophical stance advocating for the most effective ways to benefit others, underpins his actions and motivations.
However, the prosecution has countered this, stating that effective altruism is an "unconventional philosophy" that doesn't excuse fraudulent activities or affect "mens rea," the mental state required to commit fraud.
Witnesses, like former CEOs and engineering chiefs associated with FTX and Alameda Research, have given their testimonies during the trial, which is in its third week. Depositions indicate that Bankman-Fried instructed them to use customer funds for activities unrelated to FTX's standard operations.
In addition to the witness testimonies, the prosecutors have introduced various forms of evidence, such as emails, messages, spreadsheets, and bank statements, to reveal the extent of Bankman-Fried’s deceptive schemes. The prosecution argues that Bankman-Fried was fully aware of the risks and implications of his actions and took steps to conceal them from auditors, regulators, and the public.
The trial will move into its next phase, with jury instructions expected to be finalized next week. Closing arguments will follow this, and then the jury will begin deliberations to decide the legal outcome for Bankman-Fried.
As the trial of Sam Bankman-Fried nears its crucial stages, prosecutors argue that his claim of effective altruism should not serve as a valid defense against fraud allegations. The upcoming weeks will be decisive in shaping the legal repercussions for Bankman-Fried.
