Benzinga - U.S. prosecutors are challenging Sam Bankman-Fried, the founder of FTX (CRYPTO: FTT), on his defense strategy of that he was relying on legal advice.
The Southern District of New York's U.S. Department of Justice submitted a letter to Judge Lewis A. Kaplan, emphasizing the need for clarity on the advice-of-counsel defense that Bankman-Fried intends to present.
This move came as part of the broader context surrounding the anticipated fraud trial, shedding light on the intricate legal maneuvers both parties are employing.
The government's letter, dated Aug. 29, was a response to the defense's earlier communication from Aug. 23, in which the defendant signaled an intent to rely on an "advice of counsel" defense during the trial.
This defense suggested how Bankman-Fried acted was based on legal advice, implying that he believed his actions were lawful.
Prosecutors argued the defense's notice lacked detail and did not provide sufficient information about the nature of the legal advice received or the attorneys involved.
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The prosecutors requested the court to order the defendant to provide more specific details about this defense, including any documents that might support or undermine such a claim.
The government's letter also referenced a previous case, United States v Ash, where similar issues arose. In that case, the court required the defendant to provide additional information and documentation related to the advice-of-counsel defense.
The defense team's strategy of Bankman-Fried relying on the legal advice suggested that they aim to prove the FTX founder acted in good faith, believing his actions were within the bounds of the law based on counsel from his attorneys.
The prosecution's primary concern is the potential for the defense to use the involvement of attorneys as a shield, without bearing the burden of proving the elements of the advice-of-counsel defense.
They believe that without proper disclosure from the defense, the jury might be misled or confused about the role of attorneys in the defendant's actions.
The case against Bankman-Fried revolves around allegations of fraud.
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