Home Share Market FTX’s Bankman-Fried denies tampering with witnesses, accepts Reuters restraining order

FTX’s Bankman-Fried denies tampering with witnesses, accepts Reuters restraining order

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FTX’s Bankman-Fried denies tampering with witnesses, accepts Reuters restraining order


© Reuters. FILE PHOTO: Accused FTX founder Sam Bankman-Fried walks out of a United States court in New York City, New York, US, June 15, 2023. Reuters/Mike Sager/File photo

by Mrinmoy Dey

(Reuters) – Lawyers for FTX founder Sam Bankman-Fried rejected prosecutors’ claims that his discussions with a New York Times reporter amounted to witness tampering, but said in a letter to the judge in the criminal fraud case that they agreed to accept a gag order.

The letter, released on Sunday, comes after prosecutors sought to bar Bankman-Fried and associates from making public statements that could interfere with the case.

Cryptocurrency exchange FTX, once valued at $32 billion, filed for bankruptcy protection in November because it was unable to pay depositors. Bankman-Fried has pleaded not guilty to fraud.

In the letter, Bankman-Fried’s attorney confirmed that she had spoken to The New York Times and provided it with personal documents, including those written by Carolyn Ellison, a former aide who has cooperated with the US government.

“Bankman-Fried did not violate a protective order in this case, nor did he violate his bail conditions, nor did he violate any law or regulation governing his conduct,” Mark Cohen, Bankman-Fried’s attorney, said in the letter.

An article published by The New York Times titled “Inside the Private Writings of Carolyn Ellison, Star Witness in the FTX Case” cited excerpts from Ellison’s personal Google (NASDAQ: ) documents prior to the collapse of FTX, in which he spoke of being “very unhappy and overwhelmed” with his job and feeling “hurt/rejected” by his breakup with Bankman-Fried.

Ellison, who headed Bankman-Fried’s Alameda Research hedge fund, pleaded guilty to defrauding investors and agreed to cooperate with prosecutors. In December, Bankman-Fried said that she and Ellison were in a relationship but did not provide any further details.

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