The Justice Department (DOJ) is urging the detention of FTX’s SBF before the trial, claiming that his actions surpassed the bounds of exercising his right to speak to the press.
The DOJ has accused SBF of witness tampering by allegedly sharing former employee Caroline Ellison’s diary with a media outlet, specifically the Times.
In the ongoing legal proceedings against the bankrupt crypto exchange FTX, its CEO, Sam Bankman-Fried, is facing repeated calls for his detention. The U.S. Department of Justice (DOJ) is once again asserting that Bankman-Fried should be held in custody until the trial takes place.
The reason cited by the DOJ is his alleged sharing of former Alameda Research CEO Caroline Ellison’s diary with the New York Times. This accusation has led to heightened concerns about his involvement in the case.
Department of Justice Letter (Source: US DOJ)
DOJ and Defense Clash in Ongoing FTX Case
The DOJ has filed its second motion in the legal action against FTX’s CEO, Sam Bankman-Fried (SBF), claiming massive financial fraud. The back-and-forth between prosecutors and SBF’s defense team revolves around allegations of witness tampering.
The DOJ argues that Bankman-Fried’s actions were more than just exercising his right to speak to the press; they allegedly amounted to witness tampering. The accusation is based on his supposed attempt to discredit a trial witness and covertly taint the jury pool.
On July 28, the DOJ requested the revocation of Bankman-Fried’s bail, accusing him of sharing Ellison’s diary with The New York Times to harass and intimidate her. In response, SBF’s lawyers denied any witness intimidation during the criminal trial and argued against imprisoning him.
To avoid incarceration, Bankman-Fried enlisted the help of constitutional law expert Laurence Tribe, who asserted that the disclosures to The New York Times didn’t meet the threshold of “clear and convincing evidence” required for witness tampering.
The case, presided over by Judge Lewis Kaplan in the Southern District of New York, may see a further hearing to address the submitted filings.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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