Bankman-Fried Accused by US Prosecutors of Trying to Undermine Witness Credibility During Trial

US prosecutors have lodged accusations against Samuel Bankman-Fried (SBF), the co-founder of FTX crypto exchange, alleging that he used private documents to discredit his ex-girlfriend and potential witness, Caroline Ellison, in an ongoing criminal fraud trial. Ellison, the former CEO of Alameda Research LLC, had previously pleaded guilty to fraud charges related to a cryptocurrency exchange collapse and had agreed to cooperate with prosecutors in the case against SBF.

Bankman-Fried Accused by US Prosecutors of Trying to Undermine Witness Credibility During Trial

According to Bloomberg News, the prosecutors claim that Bankman-Fried selectively shared specific private documents with The New York Times to paint Ellison as a scorned lover responsible for the alleged FTX crimes. The objective behind this act was to undermine Ellison’s credibility and bolster his defense through media exposure, circumventing the constraints of the courtroom and rules of evidence.

The New York Times published a story based on writings by Ellison found in Google Docs and personal journals, indicating her mixed feelings about her role at FTX and her relationship with Bankman-Fried. Prosecutors argue that the documents excerpted in the article were not part of the materials shared with Bankman-Fried during pretrial information sharing, leading them to suspect that the documents were sourced from his personal Google Drive account.

The government maintains that Bankman-Fried’s defense strategy seeks to portray Ellison as the sole perpetrator of the alleged FTX crimes, despite substantial evidence suggesting otherwise. Prosecutors view these attempts to tarnish Ellison’s credibility before the trial as prejudicial and inappropriate.

In a separate legal battle, FTX has filed a lawsuit in the United States Bankruptcy Court against Bankman-Fried and other key executives from the now-bankrupt crypto exchange, seeking to recover over $1 billion in allegedly misappropriated funds. The lawsuit includes Caroline Ellison, FTX co-founder Zixiao “Gary” Wang, former FTX engineering director Nishad Singh, and Bankman-Fried as defendants. Previously, Ellison revealed that FTX.com had a cash deficit of more than $10 billion approximately eight months before the exchange’s collapse.

As these legal battles unfold, the crypto community closely monitors the developments, as they carry significant implications for the future of crypto regulation and legal responsibilities within the industry.