21-7-2023 (WASHINGTON) US prosecutors have recently leveled serious accusations against Sam Bankman-Fried, the founder of FTX, claiming that he engaged in witness tampering. They have requested a federal judge to issue an order prohibiting the former billionaire and other parties from making public statements that could potentially interfere with a fair trial.
In a letter addressed to US District Judge Lewis Kaplan on Thursday (Jul 20), the prosecutors referred to a New York Times article titled “Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case.” The said article contained excerpts from personal Google documents belonging to Ellison prior to the collapse of FTX. In those documents, Ellison expressed being “pretty unhappy and overwhelmed” with her job and detailed feeling “hurt/rejected” following her breakup with Bankman-Fried.
Caroline Ellison played a significant role in Bankman-Fried’s Alameda Research hedge fund and has already pleaded guilty to defrauding investors. As part of her plea agreement, she has agreed to cooperate fully with prosecutors. In December, Bankman-Fried acknowledged that he and Ellison were in a relationship, but no further details were provided.
Prosecutors assert that it is evident that Bankman-Fried shared these documents with the New York Times. Furthermore, his lawyers have reportedly confirmed to the government that he had a personal meeting with one of the authors of the article and shared documents that were not part of the government’s official discovery material. However, Bankman-Fried’s spokesperson and lawyers have yet to respond to requests for comment on the matter. Similarly, both the New York Times and Ellison’s lawyers have not responded to Reuters’ inquiries for comment.
The prosecution argues that Bankman-Fried’s act of sharing these private documents was an attempt to undermine Ellison’s credibility as a witness. They also contend that such actions could have a chilling effect on potential witnesses, deterring them from testifying, and could potentially taint the jury pool.
In their letter to the judge, the prosecutors expressed their concerns, stating, “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 defense 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.”
Prior to these developments, FTX Trading, the cryptocurrency exchange, filed a lawsuit against founder Sam Bankman-Fried and other former executives. The lawsuit seeks to recover more than US$1 billion, alleging that these individuals misappropriated funds before FTX went bankrupt.
