Sam Bankman-Fried’s legal team challenges the prosecution’s fraud case, asserting that under English law, no trust or fiduciary relationship existed between FTX and its customers. They aim to counter allegations of misappropriating deposits.
In the ongoing legal battle surrounding Sam Bankman-Fried, his attorneys are contesting a fundamental aspect of the fraud case against him. They assert that, under English law governing FTX’s terms of service, no trust or fiduciary relationship existed between the crypto exchange and its users. According to Bankman-Fried’s legal team, the absence of terms like ‘trust’ or ‘beneficial interest’ in the FTX Terms of Service, along with explicit disclaimers of fiduciary duties, precludes any such relationship. This legal stance is aimed at countering the government’s claim that Bankman-Fried orchestrated a scheme to defraud customers by diverting FTX customer funds to his trading firm, Alameda Research.
The defense further emphasizes that subjective intentions hold no relevance in determining trust existence under English law, as it is solely based on objective interpretation of contractual terms. They assert that the mere belief or expectation of a trust or fiduciary relationship does not create one. This legal battle continues as Bankman-Fried faces serious charges that could lead to more than 100 years in prison.
