Benzinga - Prosecutors in the ongoing trial of FTX founder Sam Bankman-Fried have likened defense arguments to a scene from the comedy movie “Dumb and Dumber.” The trial, presided over by Judge Lewis Kaplan in Manhattan, centers on alleged fraudulent activities by the cryptocurrency exchange.
The prosecution objected to several jury instructions provided by the defense team, CNBC reported. One particular directive reminded prosecutors of the 1994 comedy, leading to the analogy.
The defense argues that FTX customers, after depositing funds, received a credit to transact on the exchange, and therefore retained the right to request an equivalent withdrawal at a later time. Prosecutors, however, claim that this argument is “untethered to the facts of the case.”
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The crux of the government’s case is that FTX, under Bankman-Fried’s stewardship, allegedly siphoned billions of dollars out of customer accounts to cover up losses at sister hedge fund Alameda Research. These funds were also reportedly used for extraneous expenses, including a $35 million property in the Bahamas and political donations.
Bankman-Fried, 31, is facing seven criminal fraud charges tied to the collapse of his cryptocurrency empire last year. If convicted, he could face life in prison. The trial is set to resume late next week and extend into November.
Throughout the trial, Judge Kaplan has repeatedly held sidebar meetings with attorneys from both sides to discuss their courtroom demeanor. The judge has issued warnings to both the prosecution and defense lawyers to improve their conduct and communication.
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