DLC Larry David’s Superbowl ad has sparked DOJ concerns about FTX.US separation -

Larry David’s Superbowl ad has sparked DOJ concerns about FTX.US separation

Sam Bankman-Fried, the founder and former CEO of FTX, finds himself entangled in a legal battle with the Department of Justice as they prepare for his upcoming fraud trial scheduled for October. The case has brought several critical issues to light.

At the heart of the matter is whether the bankruptcy of FTX and its U.S. operations are relevant to the fraud charges Bankman-Fried faces. His legal team argues that the accusations primarily pertain to FTX’s international business, and therefore, the U.S. operations should be considered separately.

However, the DOJ contends that the lines are not so clear-cut, citing FTX’s advertising campaigns featuring notable figures like Larry David and Tom Brady. These ads, broadcasted shortly before a significant cryptocurrency market crash, seemingly blurred the distinction between FTX and FTX.US. The government’s argument is that internal documents indicate FTX made no clear separation in its advertising efforts between the international platform and FTX.US.

Furthermore, the DOJ seeks to delve into the intricate details surrounding FTX’s collapse, asserting that they are closely linked to the alleged misappropriation of customer funds. Even though Bankman-Fried claims he was coerced into relinquishing control of the company, the government maintains that events surrounding the bankruptcy are relevant to the jury, regardless of the ultimate fate of FTX.

The government’s stance is that actions taken, such as FTX co-founder Gary Wang helping Bankman-Fried move assets to the Bahamas, are acts that further the alleged wire fraud scheme. These issues surrounding FTX’s bankruptcy, advertising, and asset movement promise to make the upcoming trial a complex and closely watched legal battle, with significant implications for the cryptocurrency industry. The trial is set to commence on October 2nd.


Sam Bankman-Fried’s legal battle takes a twist as his defense team accuses the government of skirting the extradition terms from the Bahamas, where he oversaw company operations. The Department of Justice’s recent decision to withdraw charges related to campaign finance laws and alleged bribery involving Chinese officials has become a focal point.

The allegation from Bankman-Fried’s lawyers is that the government is attempting to reintroduce these charges as evidence, effectively broadening the case beyond its initial scope. This maneuver is seen as an attempt to try Bankman-Fried on charges that had previously been severed and withdrawn. His legal team contends that allowing evidence related to alleged bribery risks unfairly predisposing the jury to view Bankman-Fried as having a criminal predisposition.

Bankman-Fried’s arrest in December marked the beginning of a legal saga, and recent developments have added complexity to the case. The accusation that he breached bail conditions by contacting witnesses and leaking potential evidence to the New York Times has further muddied the waters. His defense argues that the conditions of his imprisonment make it exceedingly difficult to prepare an effective defense.

The upcoming trial promises to be closely watched, with implications that extend beyond the individual case, potentially setting legal precedents and impacting the cryptocurrency industry, given Bankman-Fried’s prominent role in the sector.

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