The US government has officially responded to Sam Bankman-Fried’s appeal, asserting that the initial conviction and forfeiture order against the former CEO of the bankrupt exchange should stand. In their response, the government addressed and rebutted all the arguments put forth in SBF’s appeal.
The US legal team, led by the US Attorney for the Southern District of New York, Damian Williams, submitted their response on December 13. They maintained that the District Court made sound decisions throughout the trial and was not biased against SBF, contrary to the former CEO’s claims.
One of the key points raised by the government was the court’s instruction to the jury to consider fraudulent intent, as there was substantial evidence supporting this claim during the trial. The government argued that Bankman-Fried’s intention was to cause loss to the victims, and none of the trial court instructions improperly influenced the jury’s decision to convict him for intending to cause harm.
The government emphasized that the victims’ loss was not merely a byproduct of the scheme but rather the central objective of Bankman-Fried’s deception. They defended the court’s decision to instruct the jury to disregard SBF’s “No Ultimate Harm” defense, asserting that standard instructions in fraud trials sufficed to establish a scheme to defraud.
Furthermore, the government contended that the trial judge’s exclusion of evidence was justified, despite SBF’s claims otherwise. The judge had limited the evidence SBF could present to demonstrate good faith, rejecting some evidence as vague or potentially misleading to the jury. The government argued that even if SBF had presented evidence of repayment, it would not absolve him of the charges, as the funds were fraudulently obtained.
As SBF awaits the deadline of January 31 to respond to the government’s counterarguments, the outcome of his appeal remains uncertain. Legal experts suggest that it is unlikely for the Appellate court to grant a retrial without substantial evidence of trial court misconduct.
Meanwhile, FTX is making arrangements to reimburse customers, with 98% expected to receive refunds within the next three months. However, customers will be refunded based on November 2022 valuations, despite the significant increase in prices since then.
In conclusion, the response from the US government underscores the challenges facing SBF in his appeal and the complexity of the legal proceedings surrounding the case. The outcome of the appeal will have significant implications for Bankman-Fried and the broader crypto community.