Former FTX CEO Sam Bankman-Fried, who is currently facing fraud charges over the collapse of the bankrupt cryptocurrency exchange, was compared to a scene from the movie “Dumb and Dumber” by prosecutors in the ongoing criminal trial. Prosecutors criticized several of the jury instructions provided by the defense team, specifically highlighting a directive that drew parallels to a famous scene in the 1994 comedy film. In the scene, Jim Carrey’s character claims that IOUs are “as good as money.”
The government’s case against Bankman-Fried centers around the alleged siphoning of billions of dollars from FTX customer accounts. These funds were purportedly used to cover losses at sister hedge fund Alameda Research and finance personal expenses, including the purchase of a $35 million property in the Bahamas and political contributions. As a result, customers were unable to retrieve a significant portion of their money when both FTX and Alameda underwent financial turmoil.
The defense’s argument centers on the notion that customers still had a credit to the funds they deposited, even if the money wasn’t physically available because it was being used for other purposes. Prosecutors contend that this argument is disconnected from the facts of the case, emphasizing that a credit to obtain funds at a later date is not equivalent in value to the actual money itself. In a footnote, the prosecution refers to the film “Dumb and Dumber,” where a briefcase filled with money transforms into a container of worthless IOUs.
Bankman-Fried, represented by attorney Mark Cohen, is facing seven criminal fraud charges related to the collapse of his cryptocurrency empire. The trial has already included testimony from former colleagues turned government witnesses. Judge Lewis Kaplan has expressed concern about the conduct of both the defense and prosecution teams in the courtroom, urging improved communication and professionalism.
The trial, which began earlier this month, is expected to resume next week and continue through November. If convicted, Bankman-Fried could potentially face life imprisonment.
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