FTX token price drops as lawyers call out SBF for another crime

FTX token (FTT) price has extended its bearish streak on the back of new allegations against FTX founder and former CEO Sam Bankman-Fried. While the shamed crypto executive continues to fight charges of fraud, bribery, and even charges of campaign finance violation, new allegations have come in, adding to the list of crimes he is answerable to.

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FTX token price suffers as SBF charges increase

FTX toke has extended its rally south to find itself stuck between the 100-day and 50-day Exponential Moving Averages (EMA) at $1.47 and $1.36, respectively. Recovery efforts appear to have stopped at this level, for the meantime, as the former CEO of the collapsed cryptocurrency exchange faces charges that add to the stockpile of cases he must answer to.

FTT/USDT 1-Day Chart

Based on recent reports, Sam Bankman-Fried has been discovered to be sponsoring his defense team using stolen funds. The news comes as lawyers representing the collapsed exchange claim that SBF was paying up to $10 million for his lawyer using money resulting from misappropriation when he was servicing the exchange.

Further, the lawyers also call him out for issuing up to $10 million to Joe Bankman, his father, further worsening the outlook of his case.

Based on these accusations, the exchange’s legal representatives want SBF to answer for an extended list of crimes, now including stealing funds to pay his lawyers. The accusation continues to paint him as a conman.

SBF uses tainted money to pay attorney fees

In a 2019 publishing where lawyers discussed the concept of stolen funds being used for legal fees, one lawyer is quoted saying:

If I as an attorney learn that my client has retained me with stolen money, I believe I have both an ethical and moral obligation to return that money to its proper owner and then withdraw from representation of that client.

The lawyers were discussing the ethical dilemma around the civil lawyer of Jennifer McDonald, Lee Berlik, was facing. Like SBF, Jennifer was cited for allegedly using stolen money to pay for his services. If proven true, the position of the US Department of Justice (DOJ), as cited in the US Attorneys’ Manual (“USAM”), is that lawyers should not face prosecution under § 1957 “based on the receipt of bona fide legal fees for legitimate representation in a criminal matter.”

However, SBF’s lawyers would only be blameless if it was proven beyond reasonable doubt that they did not have any actual knowledge about the illegal source of the specific funds. Nevertheless, FTX lawyers are already working out how to recover those funds from SBF and other executives from the firm. 

While SBF has not commented on this accusation, FXStreet team is monitoring developments and will update you.