🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Prosecutors accuse FTX's Bankman-Fried of witness tampering

Published 07/21/2023, 03:01 AM
Updated 07/21/2023, 10:26 AM
© Reuters. FILE PHOTO: Indicted FTX founder Sam Bankman-Fried exits United States Court in New York City, New York, U.S., June 15, 2023. REUTERS/Mike Segar/
GOOGL
-
GOOG
-

By Shubham Kalia and Gokul Pisharody

(Reuters) -U.S. prosecutors have accused FTX founder Sam Bankman-Fried of witness tampering and asked a federal judge to issue an order that would bar the former billionaire and other parties from making public statements likely to interfere with a fair trial.

The prosecutors wrote to U.S. District Judge Lewis Kaplan on Thursday referencing a New York Times article titled "Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case".

The article reported excerpts from Ellison's personal Google (NASDAQ:GOOGL) documents from before the collapse of FTX in which she spoke about being "pretty unhappy and overwhelmed" with her job and feeling "hurt/rejected" from her breakup with Bankman-Fried.

Ellison led Bankman-Fried's Alameda Research hedge fund and has pleaded guilty to defrauding investors and agreed to cooperate with prosecutors. In December, Bankman-Fried said he and Ellison had been in a relationship but gave no further details.

Prosecutors said it was apparent Bankman-Fried shared documents with the New York Times and that his lawyers have since confirmed to the government that he met with one of the article's authors in person and shared documents "that were not part of the government's discovery material."

Bankman-Fried's spokesperson and lawyers did not immediately respond to requests for comment. The New York Times declined to comment, and Ellison's lawyers did not respond to a Reuters request for comment.

The prosecutors argued that by sharing these documents, Bankman-Fried was trying to malign Ellison's credibility, and that such conduct could chill witnesses from testifying and taint the jury pool.

© Reuters. FILE PHOTO: Indicted FTX founder Sam Bankman-Fried exits United States Court in New York City, New York, U.S., June 15, 2023. REUTERS/Mike Segar/

"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", prosecutors wrote in the letter.

Earlier on Thursday, FTX Trading sued founder Bankman-Fried and other former executives of the cryptocurrency exchange, seeking to recoup more than $1 billion they allegedly misappropriated before FTX went bankrupt.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.