Crypto Exchange FTX’s Former CEO, Sam Bankman-Fried, Agrees to Gag Order Amid Criminal Fraud Case

Crypto Exchange FTX’s Former CEO, Sam Bankman-Fried, Agrees to Gag Order Amid Criminal Fraud Case

Amid an ongoing criminal fraud case, Sam Bankman-Fried (SBF), the former CEO of the cryptocurrency exchange FTX, has acquiesced to a court-ordered “gag order” aimed at preventing him from making any public statements that could potentially sway the trial’s outcome.

This development arose in response to concerns raised by the US government after SBF allegedly made derogatory remarks about a key witness, Caroline Ellison, during an interview with the esteemed publication, the New York Times.

In spite of SBF’s legal team staunchly denying the prosecution’s allegations and refuting any claims of witness tampering, they chose to accept the gag order to preclude any appearance of impropriety and to adhere to the court’s guidelines.

A letter, dated July 22, was submitted by Bankman-Fried’s lawyers, Cohen & Gresser LLP, and addressed to United States District Court Judge Lewis A. Kaplan of New York. In this letter, it was confirmed that SBF had cooperated with the New York Times by providing personal documents, which included writings from his former colleague, Caroline Ellison. Ellison, who has been cooperating with the US government, is regarded as a pivotal witness in the FTX case and has already pleaded guilty to defrauding investors.

The New York Times article titled “Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case” disclosed excerpts from Ellison’s personal Google documents, where she expressed discontent with her job and discussed her past relationship with Bankman-Fried.

The gag order’s primary objective is to prevent SBF from making any further statements or taking actions that might interfere with the ongoing trial or influence potential jurors. The trial holds immense significance, considering that FTX, once valued at $32 billion, filed for bankruptcy protection in November due to an inability to repay depositors. Throughout the legal proceedings, Bankman-Fried has steadfastly maintained his innocence against the fraud charges leveled against him.

Remarkably, SBF’s legal team is also seeking to extend the same gag order to all potential witnesses involved in the case, including John J. Ray III, the current CEO of the FTX Debtor entities. They allege that John Ray has been making public comments and filings that malign their client and do not contribute constructively to the FTX bankruptcy proceedings. By advocating for the extension of the gag order to all parties, SBF’s lawyers aspire to uphold fairness and equity throughout the trial process.

The trial for Sam Bankman-Fried’s fraud charges is scheduled to commence on October 3. As the legal proceedings unfold, the court is steadfast in its commitment to ensuring a fair and impartial trial, with all parties adhering strictly to the stipulated guidelines to preserve the case’s integrity.