The US Department of Justice (DOJ) claimed that Sam Bankman-Fried (SBF) released Caroline Ellison’s personal diary to US government reporters. New York Times, According to information on July 20 letter To Judge Louis Kaplan.
On June 20th, new york times published Ellison’s personal writings detailing her relationship with the disgraced former FTX CEO and how her leadership role at Alameda Research overwhelmed her. The report noted that Ellison’s testimony could be important in the SBF trial.
The Justice Department claimed that the SBF released the letter as part of an effort to “obstruct a fair trial by an impartial jury,” adding that the release could, among other things, “publicly discredit the government witness” and prejudice the jury against her (“tainting the jury mass”).
“In addition to tarnishing the jury’s standing, the effect of the defendant’s actions, if unintentional, is to not only harass Ellison, but also to discourage other potential trial witnesses from testifying.”
As a result, authorities are asking judges to restrict extrajudicial statements by parties and witnesses involved in cases.
FTX seeks $1 billion recovery from former executives
Bankrupt crypto exchange FTX has filed a lawsuit to recover more than $1 billion in alleged misappropriation by former executives, including SBF, Ellison, CTO Zixiao “Gary” Wang and Nishad Singh, according to a court on July 20. filing.
According to the filing, the defendants allegedly violated their fiduciary duties and misappropriated hundreds of millions of dollars belonging to FTX.
“Defendants have abused their control over FTX Group to commit one of the largest financial frauds in history. Since the founding of FTX Group, Defendants have continued to divert debtors’ funds to fund luxury condominiums, political and ‘charitable’ donations, speculative investments, and other pet projects. “
The filing essentially recapitulates the actions of executives that led to the demise of FTX, pointing out how they put their own interests ahead of the companies they ran.
The bankrupt company claims more than $1 billion was fraudulently transferred by its executives, adding that more transfers could be uncovered as the lawsuit progresses.
All of the executives named in the lawsuit, with the exception of SBF, have pleaded guilty to criminal charges brought by the US government.
SBF’s father claims he’s funding his defense with company funds
FTX, meanwhile, claimed that Bankman-Fried was supporting its defense through a $10 million gift he gave his father in January 2022.
According to the complaint, SBF illegally ordered the transfer of funds from the FTX US account containing the debtor’s assets to the same account on the exchange. He then transferred this fund to his father’s account.
FTX said SBF’s father moved $6.775 million of this money into personal accounts at Morgan Stanley and TD Ameritrade, leaving only $3.225 million in FTX’s U.S. account. However, due to cryptocurrency trading losses, only his $2.2 million balance remains in his FTX US account.
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