U.S. Department of Justice: Existing laws sufficient to charge SBF with fraud! Currently in the process of selecting jurors.

It has been nearly a year since the bankruptcy reorganization of FTX. After the founder SBF was extradited from the Bahamas to the United States, he finally appeared in court for a hearing yesterday evening. Although formal trial proceedings have not yet begun, US prosecutors believe that the existing legal framework is sufficient to charge SBF with fraud.

US Department of Justice Expresses Views on SBF Case

Regarding the case where FTX founder SBF is accused of wire fraud, conspiracy to commit commodities fraud, wire fraud, and money laundering, the trial officially began last night.

According to The Block's report, US prosecutors reiterated today that existing legal frameworks are sufficient to charge SBF with fraudulent activities.

In a document submitted on Wednesday, the US Department of Justice rejected SBF's statement, stating:

"There is a clear lack of relevant law or guidance directly impacting whether the alleged use of user deposits constitutes misappropriation rather than permitted business conduct."

The prosecutors argued that there is indeed an injunction against misappropriating user assets, which is the law the defendant is accused of violating. The Department of Justice also added that while the existence of the law may be related to establishing a legal duty of care, the lack of regulations is not relevant to the issue of victims entrusting assets to the defendant for custody.

Furthermore, the Department of Justice believes that the court should reject SBF's request for reconsideration to provide evidence regarding asset recovery in the FTX bankruptcy proceedings. As for whether SBF can present his "prior good deeds"? The Department of Justice believes that as long as this evidence is presented for legitimate purposes rather than character or preference purposes, it is permissible.

SBF's trial has not officially commenced and jury selection is ongoing

On the first day of the trial, the judge conducted a lengthy investigation of nearly 50 potential jurors, who varied in age and profession. They included elderly individuals with diabetes, investment bankers whose companies had invested in FTX, military personnel, educators, insurance agents, etc. Many of them had no knowledge of cryptocurrency, while others had experienced losses from investing in cryptocurrency. There was even someone whose friend committed suicide due to a Ponzi scheme.

The trial did not proceed to SBF's case on the first day, but focused on selecting the jury. Ultimately, 12 jurors and 6 alternate jurors will be chosen from the pool.