FTX founder Sam Bankman-Fried wants to influence witnesses. At least that’s what the public prosecutor believes and wants to ban him from making public statements. In addition, the insolvent crypto exchange itself has sued its ex-boss.
The collapse of FTX made headlines around the world. Ahead of the approaching fraud trial in connection with the bankruptcy of the crypto exchange, prosecutors are now accusing founder Sam Bankman-Fried of wanting to influence witnesses. As a result, she petitioned a US court to bar the main defendant from making public statements that could prejudice a fair trial.
“New York Times” report as source
The prosecutors referred to a New York Times report about Caroline Ellison, who ran Bankman-Fried’s brokerage house Alameda. She is also accused of fraud and had pleaded guilty.
Bankman-Fried, in turn, accuses the prosecutor of having provided the newspaper with documents that were not part of the state-secured documents. This is intended to discredit Ellison, who was temporarily involved with the FTX boss, as a witness.
The New York Times quoted Ellison’s personal documents as saying she was “pretty unhappy and overwhelmed” with her job and felt “hurt/rejected” by Bankman-Fried’s split. The newspaper, the prosecutor’s office, and Bankman-Fried’s and Ellison’s attorneys could not immediately be reached for comment.
FTX sues Bankman-Fried and top executives
The Bankman-Fried fraud trial is scheduled for October 2nd. After rumors of irregularities and a failed rescue by arch-rival Binance, FTX slid into bankruptcy in November 2022. According to insiders, Bankman-Fried secretly transferred $10 billion in FTX client funds to Alameda. He is under arrest at his parents’ home on $250 million bail.
Bankman-Fried himself told Reuters in November 2022 that his “confusing internal labeling” had been misinterpreted. He rejects the allegations of fraud as well as the accusation of violating campaign finance laws and paying millions in bribes in China. In June 2023, however, he failed with a motion to drop at least 11 of the 13 charges.
In addition, the insolvent crypto exchange FTX itself is now demanding more than a billion dollars of allegedly embezzled funds from Bankman-Fried and other former top managers. Insolvency administrator and new head of the company is John Ray, who raises serious allegations against the founder. A spokesman for Bankman-Frieds also declined to comment.