Former FTX CEO, Sam Bankman-Fried, is now facing additional charges from the US Department of Justice (DoJ) over alleged involvement in leaking Caroline Ellison’s private diary to The New York Times. The newspaper published an article on July 20, 2023, discussing the contents of Ellison’s personal writings, which are expected to be crucial as she is a “star witness” in Bankman-Fried’s upcoming trial.
The DoJ accused Bankman-Fried of providing The New York Times access to Ellison’s journal to tarnish her reputation and discredit her as a witness.
According to the DoJ, this tactic bypassed the courtroom’s restrictions and established rules of evidence.
The DoJ petitioned Judge Lewis A. Kaplan to limit extrajudicial statements made by both parties and witnesses to ensure the trial’s fairness and the jury’s impartiality. The leaks not only risk prejudicing the jury pool but could also discourage other witnesses from coming forward and participating in the proceedings.
The DoJ pointed out that Bankman-Fried’s motive is evident, as Ellison has already admitted guilt in a cooperation agreement and is scheduled to testify during the trial.
Caroline Ellison, a mathematics graduate of Stanford University and former CEO of Alameda Research, was rumored to have a romantic relationship with Bankman-Fried before FTX collapsed.
Her testimony is expected to shed light on collusion between her and Bankman-Fried to deceive FTX’s clients, investors, and Alameda’s lenders. Ellison had pleaded guilty to federal charges and was granted bail just after a month after FTX’s collapse in December.
Bankman-Fried and other FTX officials are facing a slew of criminal charges, including allegations of fraud involving the misappropriation of billions of dollars in customer funds.
He is preparing to defend himself against the initial eight charges brought against him by American authorities. If found guilty, he could receive a sentence of more than 100 years in jail.
Bankman-Fried is currently under house arrest while awaiting his trial in October.
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