FTX's Bankman-Fried denies witness tampering, accepts gag order

By Mrinmay Dey

(Reuters) -Legal professionals for FTX founder Sam Bankman-Fried rejected prosecutors’ claims that his discussions with a New York Instances reporter amounted to witness tampering however agreed to just accept a gag order, they mentioned in a letter to the decide within the legal fraud case.

The letter, launched on Sunday, got here after prosecutors sought to bar Bankman-Fried and allies from making public statements that might intrude with the case. The protection requested that the order additionally apply to prosecutors and potential witnesses, specifically FTX Chief Government Officer John Ray.

U.S. District Decide Lewis Kaplan is about to think about the attainable order throughout a Wednesday listening to in federal courtroom in Manhattan.

Cryptocurrency change FTX, as soon as valued at $32 billion, filed for chapter in November. Bankman-Fried has pleaded not responsible to prices he stole buyer funds, and is about to go on trial on Oct. 2.

Within the letter, Bankman-Fried’s lawyer Mark Cohen confirmed his consumer had spoken with a New York Instances reporter and supplied paperwork written by a former colleague, Caroline Ellison, who has cooperated with prosecutors.

The July 20 Instances article reported excerpts from Ellison’s private Google (NASDAQ:) paperwork from earlier than the collapse of FTX through which she spoke about being “fairly sad and overwhelmed” together with her job and feeling “damage/rejected” from her breakup with Bankman-Fried.

Ellison led Bankman-Fried’s Alameda Analysis hedge fund and has pleaded responsible to defrauding traders. In December, Bankman-Fried mentioned he and Ellison had been in a relationship however gave no additional particulars.

Cohen mentioned Bankman-Fried’s conduct “didn’t violate the protecting order on this case, nor did he violate his bail circumstances, nor did he violate any regulation or rule.”

In arguing the order must also apply to Ray, Cohen mentioned bankrupt FTX’s present chief has “attacked and vilified” Bankman-Fried, pointing to his remark that the “villains” within the FTX case have been being pursued by authorities and his assertion that Bankman-Fried lied to maintain up a “digital con recreation.”

A spokesperson for the FTX debtors declined to remark. A spokesman for the U.S. Lawyer’s workplace in Manhattan, which is prosecuting the case, didn’t instantly reply to a request for remark.