Prosecutors argue ‘effective altruism’ inadequate in Bankman-Fried case
In the fraud trial of Sam Bankman-Fried, prosecutors have requested the judge to inform the jury that the defendant’s assertion that he is an effective altruist should not serve as a legitimate defense. Bankman-Fried faces allegations of misappropriating billions of dollars from FTX customers for personal purposes, such as political contributions, real estate and investments.
In a letter presented on Thursday, the prosecution noted that Bankman-Fried’s legal counsel sought to contend that he should not be charged with fraud because he had intentions to reimburse customers through methods like FTX’s growth and profitable investments. They asserted that this argument lacks relevance and does not absolve the fraud allegations.
Bankman-Fried’s defense has endeavored to portray him as a philanthropist with a sincere commitment to creating a positive global influence. They contend that his endorsement of effective altruism, a philosophical movement promoting the most influential methods to assist others, such as charitable contributions or pursuing impactful careers, reflects his underlying motivations.
The prosecutors argue that effective altruism cannot serve as a defense against fraud. They characterize it as an “unconventional philosophy regarding the ethics of deception and theft.” In their view, this ideology has no bearing on mens rea, the mental state necessary to commission fraud.
Cointelegraph has been covering the trial on the ground in New York, which is now nearing the end of its third week. During the trial, the prosecution has presented multiple witnesses, including Caroline Ellison, the former CEO of Alameda Research; Nishad Singh, the former engineering chief of FTX and Alameda; and Gary Wang, one of the co-founders of the now-defunct FTX.
Based on their statements, Bankman-Fried directed them to obtain funds from FTX customers without their awareness or consent for purposes unrelated to FTX’s regular operations.
Related: Latest update — Former FTX CEO Sam Bankman-Fried trial [Day 12]
They also claim that Bankman-Fried had an understanding of the potential dangers and repercussions resulting from his actions. They said that he actively hid these actions from regulatory authorities, auditors and the public. As evidence, they introduced a compilation of emails, messages, spreadsheets, and bank records that revealed the full scope of Bankman-Fried’s deceptive plan.
Finalizing the jury instructions is expected next week, followed by closing arguments. Subsequently, the jury will commence deliberations to determine Bankman-Fried’s legal fate.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
According to the US Department of Justice, Wolf Capital’s co-founder has pleaded guilty to wire fraud conspiracy for luring 2,800 crypto investors into a Ponzi scheme.
Making Britain better off will be “at the forefront of the chancellor’s mind” during her visit to China, the Treasury has said amid controversy over the trip.
Rachel Reeves flew out on Friday after ignoring calls from opposition parties to cancel the long-planned venture because of market turmoil at home.
The past week has seen a drop in the pound and an increase in government borrowing costs, which has fuelled speculation of more spending cuts or tax rises.
The Tories have accused the chancellor of having “fled to China” rather than explain how she will fix the UK’s flatlining economy, while the Liberal Democrats say she should stay in Britain and announce a “plan B” to address market volatility.
However, Ms Reeves has rejected calls to cancel the visit, writing in The Times on Friday night that choosing not to engage with China is “no choice at all”.
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The chancellor will be accompanied by Bank of England governor Andrew Bailey and other senior executives.
She will meet with her counterpart, Vice Premier He Lifeng, in Beijing on Saturday to discuss financial services, trade and investment.
She will also “raise difficult issues”, including Chinese firms supporting Russia’s invasion of Ukraine and concerns over constraints on rights and freedoms in Hong Kong, the Treasury said.
But it did not mention whether Ms Reeves would raise the treatment of the Uyghur community, which Downing Street said Foreign Secretary David Lammy would do during his visit last year.
Britain’s Foreign Secretary David Lammy and Chinese Foreign Minister Wang Yi in Beijing. Pic: AP
On Friday, Culture Secretary Lisa Nandy defended the trip, telling Sky News that the climbing cost of government borrowing was a “global trend” that had affected many countries, “most notably the United States”.
“We are still on track to be the fastest growing economy, according to the OECD [Organisation for Economic Co-operation and Development] in Europe,” she told Anna Jones on Sky News Breakfast.
“China is the second-largest economy, and what China does has the biggest impact on people from Stockton to Sunderland, right across the UK, and it’s absolutely essential that we have a relationship with them.”
Read more – Ed Conway analysis: The chancellor’s gamble with China
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Nandy defends Reeves’ trip to China
However, former prime minister Boris Johnson said Ms Reeves had “been rumbled” and said she should “make her way to HR and collect her P45 – or stay in China”.
While in the country’s capital, Ms Reeves will also visit British bike brand Brompton’s flagship store, which relies heavily on exports to China, before heading to Shanghai for talks with representatives across British and Chinese businesses.
It is the first UK-China Economic and Financial Dialogue (EFD) since 2019, building on the Labour government’s plan for a “pragmatic” policy with the world’s second-largest economy.
Sir Keir Starmer was the first British prime minister to meet with China’s President Xi Jinping in six years at the G20 summit in Brazil last autumn.
Relations between the UK and China have become strained over the last decade as the Conservative government spoke out against human rights abuses and concerns grew over national security risks.
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How much do we trade with China?
Navigating this has proved tricky given China is the UK’s fourth largest single trading partner, with a trade relationship worth almost £113bn and exports to China supporting over 455,000 jobs in the UK in 2020, according to the government.
During the Tories’ 14 years in office, the approach varied dramatically from the “golden era” under David Cameron to hawkish aggression under Liz Truss, while Rishi Sunak vowed to be “robust” but resisted pressure from his own party to brand China a threat.
The Treasury said a stable relationship with China would support economic growth and that “making working people across Britain secure and better off is at the forefront of the chancellor’s mind”.
Ahead of her visit, Ms Reeves said: “By finding common ground on trade and investment, while being candid about our differences and upholding national security as the first duty of this government, we can build a long-term economic relationship with China that works in the national interest.”
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