FTX founder Sam Bankman-Fried's lawyers denied witness tampering allegations linked to his conversations with a New York Times reporter but accepted a gag order in a letter to the judge overseeing the criminal fraud case.
Denying Accusations Regarding Leaking Documents
As revealed by his legal representatives, Reuters reported that FTX founder Sam Bankman-Fried has firmly denied accusations of witness tampering following his conversations with a New York Times reporter. This came in response to prosecutors' efforts to restrict Bankman-Fried and his associates from making public statements related to the case.
The letter was released in response to prosecutors' attempts to prevent Bankman-Fried and his allies from making public statements that could impact the case. As per the letter, he acknowledged that he had engaged in discussions with the New York Times and shared personal documents.
These documents included writings from a former colleague, Caroline Ellison, who has been cooperating with the U.S. government. Lawyer Mark Cohen stated, "Bankman-Fried did not violate the protective order in this case, nor did he violate his bail conditions, nor did he violate any law or rule governing his conduct."
Accused of Leaked Documents
According to the filing released last July 20, Bankman-Fried was identified as a source for a recent New York Times article titled "Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case," which was also published on the same day.
Prosecutors highlighted that in the personal writings shared with The Times, Ellison expressed feelings of overwhelm by her job at Alameda, the emotional distress from her breakup with Bankman-Fried, and professional insecurities.
According to the authorities, by sharing these documents with the press, Bankman-Fried is trying to discredit the witness, portray Ellison negatively, and advance his defense through media influence rather than relying on courtroom procedures and evidence rules.
Aside from being Bankman-Fried's ex-girlfriend, Caroline Ellison was also the Chief Executive Officer of his crypto hedge fund Alameda Research. She had previously pleaded guilty to the charges in December and has since been cooperating with prosecutors. Ellison is now set to become a key witness in Mr. Bankman-Fried's criminal trial, scheduled for October 2nd.
Notably, this filing wasn't the sole piece of adverse legal news for Bankman-Fried. As reported by Rolling Stones, a group of former FTX and Alameda lawyers filed a lawsuit against the founder in Delaware bankruptcy court, alleging that he and the leadership team of the crypto exchange had embezzled hundreds of millions of dollars.
The former employees claimed that one method employed by SBF was channeling funds to his parents, including a substantial $10 million gift to his father.
