FTX Founder SBF Charged by US DOJ for Leaking Private Diary of Former Alameda Research CEO

Sam Bankman-Fried (SBF), the founder and former CEO of FTX, faces fraud, wire fraud, money laundering and several other charges by US prosecutors.

The almost year-long criminal case has been ongoing since his arrest in the Bahamas following the FTX collapse.

on 20 july Admission The US Department of Justice (DOJ) accused the ex-FTX CEO of leaking Caroline Ellison’s private diary. new York Times,

Caroline Ellison was the former CEO of Alameda Research, a subsidiary of FTX, who turned approver in the Bankman-Fried case.

US DOJ requests court to order restraining SBF and other parties from making extrajudicial statements

The DOJ based its allegation on a recently published report new York Times Article This led to excerpts from Ellison’s personal diary.

In view of this allegation, the DOJ seeks to ban all out-of-court statements by witnesses and parties related to the case.

The DOJ condemned Bankman-Fried’s sharing of Ellison’s views with a New York Times reporter. US prosecutors argued;

Respondent’s actions (…) reflect the main concern of Rule 23.1 that the dissemination of material concerning the testimony or credibility of potential witnesses likely involves substantial likelihood or prejudice to a fair trial and the proper administration of justice.

According to prosecutors, Rule 23.1(a) It prohibits lawyers and their clients from releasing personal information about a case if it could potentially interfere with a fair trial.

Prosecutors asked the court to issue a restraining order on extrajudicial statements due to the increased media attention to the case. They also argue that the defendant can manipulate media coverage to their advantage.

In addition, the DOJ stated that Sam Bankman-Fried’s actions could discredit the jury and bring harassment on Ellison.

He raised concerns about public harassment and fear of tarnishing personal image to prevent potential trial witnesses from testifying.

FTX Leadership Sues Bankman-Fried and Others to Recover Wrongful Funds

The DOJ’s filing comes after FTX, led by CEO John Ray III, filed a civil case in U.S. Bankruptcy Court for the District of Delaware against SBF, Ellison and other executives.

The civil lawsuit seeks to recover funds and reverse transactions valued at more than $1 billion.

The lawsuit, filed Thursday, July 20, alleges that the defendants abused their control of FTX Group’s businesses to perpetrate massive fraud from February 2020 to November 22.

It states that Bankman-Fried and her associates squandered FTX’s assets on luxury homes, political and charitable donations, and other personal investments.

The lawsuit alleges that Sam Bankman-Fried transferred $10 million of FTX.US funds to his own wallet.

It also alleged that Bankman-Fried’s brother, Gabriel, had planned to purchase the island of Nauru with foundation funds.

FTX also alleges that the former CEO donated over $100 million of company and customer funds to political campaigns through fraudulent cash and share transfers.

Furthermore, according to the lawsuit, Alameda’s former CEO, Ellison, gave himself a $22.5 million bonus when FTX faced a severe cash crunch.

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