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The Fall of FTX: Prosecutors Compare Defense to Dumb and Dumber Scene

BlockNews.com Team by BlockNews.com Team
October 27, 2023
in BUSINESS, CRYPTO, FINANCE
Reading Time: 3 mins read
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  • Prosecutors compared a defense jury instruction to a scene from Dumb and Dumber, arguing that FTX credits weren’t the same as having customer funds
  • The disputed instruction said FTX customers receiving credits to transact was the same as the right to withdraw funds later
  • Prosecutors allege Bankman-Fried defrauded investors out of billions as FTX collapsed; he faces life in prison on fraud charges

The high-profile trial of former FTX CEO Sam Bankman-Fried continues in New York as prosecutors and defense attorneys battle over jury instructions. In a surprising move, the prosecution compared one of the defense’s arguments to a famous scene from the 1994 comedy Dumb and Dumber.

Prosecution Takes Issue with Defense Instructions

In a written brief to Judge Lewis Kaplan on Thursday, federal prosecutors pushed back against several of the jury instructions proposed by Bankman-Fried’s defense team. One instruction in particular reminded them of the classic comedy starring Jim Carrey and Jeff Daniels.

🚨 NEWS: Prosecutors in the FTX trail compared SBF's defense to Jim Carrey's 'Dumb and Dumber' IOU scene. pic.twitter.com/8MbJv5uSBW

— BlockNews.com (@blocknewsdotcom) October 20, 2023

The Argument in Question

The disputed instruction stated that if FTX customers received a credit to transact on the exchange after depositing funds, that was the same as having the right to withdraw those funds later. The prosecution argues this is untrue, since FTX customer money was actually misused for things like real estate and political donations as the company crumbled.

A Reference to Dumb and Dumber

In a footnote, the prosecution said this defense claim was like a scene in Dumb and Dumber. When a briefcase of ransom money is opened, it contains only IOUs. Carrey’s character still insists “That’s as good as money, sir.” Prosecutors say credits aren’t the same as having the actual funds.

The High Stakes of the Trial

The government alleges Bankman-Fried defrauded investors out of billions of dollars as his crypto empire collapsed. He faces up to life in prison on fraud charges. The trial continues with former executives testifying against Bankman-Fried after striking deals with prosecutors.

Conclusion

As the closely-watched FTX trial continues, prosecutors are pushing back hard against the defense team’s claims. The comparison to a classic comedy scene underscores how contentious the arguments have become in this high-profile corporate fraud case.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: cryptoFTXFTX lawsuitSam Bankman-Fried
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BlockNews.com Team

BlockNews.com Team

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