On July 20, the United States Department of Justice (DOJ) filed a complaint against Sam Bankman-Fried (SBF), the founder of FTX, accusing him of leaking private papers of Caroline Ellison, who was once his business ally and romantic partner. This new complaint comes after Ellison became a government witness in SBF’s case in late 2022.
The DOJ alleges that Bankman-Fried attempted to interfere with a fair trial by publicly discrediting Ellison. According to the complaint, he shared her personal writings with a reporter, which were featured in an article published by the New York Times on July 20. U.S. attorney Damian Williams argued that this was an attempt by SBF to discredit a government witness.
The documents shared with the reporter were believed to have come from Bankman-Fried’s personal Google Drive account. The attorney stated that these documents were not part of the government’s discovery materials and should not have been shared. Williams further explained that the U.S. federal rules of civil procedure prohibit lawyers and their agents from releasing non-public information that may interfere with a fair trial.
The government has requested that the court enter an order, pursuant to Local Rule 23.1, which prohibits “extrajudicial statements by parties and witnesses” that could potentially interfere with the right to a fair trial by an impartial jury. Williams argued that having the story appear in a reputable newspaper without identifying the defendant as the source could mislead readers and taint prospective jurors.
Cointelegraph reached out to both the DOJ and SBF’s defense attorneys for comment but did not receive an immediate response. The article will be updated pending new information.
FTX, once a major global cryptocurrency exchange, faced a collapse in mid-November 2022, likely triggered by a liquidity crisis surrounding the company’s token, FTT. The collapse was also attributed to the bear market of 2022 and deeper issues related to the link between FTX and Alameda.
Following the implosion of SBF’s crypto empire, seven lawsuits were filed against him by early December 2022. The former FTX CEO is scheduled to appear in court on October 2, facing multiple charges including fraud, claims of illegal political donations, and bribes to the Chinese government.
As the legal battle between SBF and the DOJ continues, the crypto community will be closely watching for any developments that could have implications for the industry as a whole.
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