US prosecutors have accused Sam Bankman-Fried, the embattled Founder of now-bankrupt cryptocurrency exchange, FTX, of sharing personal documents belonging to Caroline Ellison, his former ally and romantic partner, with the media. The Department of Justice (DoJ) made the allegations yesterday (Thursday) in a filing addressed to Lewis Kaplan, the US District Judge presiding over the case between the prosecutors and the ex-CEO of FTX.
Did Bankman-Fried Leak Ellison’s Diary?
Ellison is the former CEO of FTX’s sister trading firm Alameda Research. In December 2022, a month after FTX’s collapse, Ellison alongside Zixiao (Gary) Wang, the former Chief Technology Officer of FTX, pleaded guilty to criminal charges initiated by the DoJ. Ellison and Wang also started cooperating with public authorities in their investigation into FTX’s demise.
On Thursday, the New York Times published an article in which it wrote that it reviewed certain Google documents written by Ellison. The documents reportedly contain observations about the personal and professional relationship between the former Alameda Research boss and Bankman-Fried.
The outlet described details in the documents as ‘personal and raw’, adding that the documents illustrate the complexity of the relationship between Bankman-Fried and Ellison. However, the publication did not disclose how it got the document.
In the court filing submitted yesterday, the DoJ attributed the ‘extrajudicial statements’ to Bankman-Fried, noting that the crypto entrepreneur’s lawyers confirmed that the FTX’s Founder met in person one of the reporters by-lined in the article. The lawyers also reportedly admitted that Bankman-Fried shared documents that are not part of the prosecutors’ discovery material with the said reporter. However, the enforcement agency believes that the documents “likely came from the [Bankman-Fried’s] personal Google Drive account.”
“The defendant’s purpose in sharing these materials is plain. Ellison has pleaded guilty to a cooperation agreement and is expected to testify at trial that she agreed with the defendant to defraud FTX’s customers and investors, and Alameda’s lenders,” Damian Williams, the United District Attorney for the Southern District of New York, explained in the filing.
“By selectively sharing certain private documents with the New York Times, the defendant is attempting to discredit a witness, cast Ellison in a poor light, and advance his defence through the press and outside the constraints of the courtroom and rules of evidence: that Ellison was a jilted lover who perpetrated these crimes alone,” the District Attorney further argued.
Additionally, Williams contended that Bankman-Fried with the move attempted to interfere with a fair trial by an impartial jury. He also sought to publicly discredit a government witness.
As a result, DoJ asked the court to issue an order that limits extrajudicial statements by parties and witnesses likely to interfere with a fair trial by an impartial jury. The enforcement agency added that the alleged leakage by Bankman-Fried “could have a chilling effect on witnesses”.
Bankman-Fried Trial Draws Closer
The new allegation is the latest development in the federal prosecution of the FTX’s Founder following his arrest in the Bahamas last year and subsequent extradition to the United States.
Finance Magnates reported that US prosecutors initially brought eight counts of charges against the disgraced crypto entrepreneur who has pleaded not guilty. However, they added five more counts of charges post-extradition. Reacting, Bankman-Fried’s lawyers took up the matter at the Bahamas Supreme Court, seeking dismissal of the extra charges.
Meanwhile, Bankman-Fried’s legal counsel also recently filed pre-trial motions in the United States, arguing for court dismissal of 10 of the charges filed by federal prosecutors. However, Judge Kaplan recently struck out all the motions.
This article was written by Solomon Oladipupo at www.financemagnates.com.
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