US DOJ Accuses Bankman-Fried of Leaking Colleague's Diary to Discredit Witness

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US prosecutors alleged that Samuel Bankman-Fried, co-founder of defunct FTX, leaked his former colleague’s private diary to the media in an effort to undermine her credibility as a witness during his criminal fraud trial.

The Department of Justice accused Bankman-Fried of being responsible for leaking the private diary of star witness Caroline Ellison, a former colleague, to the New York Times in a court filing yesterday.

US DOJ accuses FTX founder of leaking private diary of Caroline Ellison https://t.co/brxgfhBkOv pic.twitter.com/yuGhzS22BR

— NFT Often (@nftoftendotcom) July 21, 2023

The New York Times published an article titled “Inside the Private Writings of Caroline Ellison, Star Witness in the FTX Case,” which provided personal insights into Ellison’s emotional state during her time at Alameda Research LLC.

The article revealed details about her struggles with the pressures of her role, emotional pain from a breakup with Bankman-Fried, and professional insecurities.

“The defendant’s purpose in sharing these materials is plain,” the filing said. “Ellison has pleaded guilty to a cooperation agreement and is expected to testify at trial that she agreed with the defendant to defraud FTX’s customers and investors, and Alameda’s lenders. By selectively sharing certain private documents with the New York Times, the defendant is attempting to discredit a witness, cast Ellison in a poor light, and advance his defense through the press and outside the constraints of the courtroom and rules of evidence: that Ellison was a jilted lover who perpetrated these crimes alone.”

Ellison had already pleaded guilty to fraud charges related to the crypto exchange’s collapse and agreed to cooperate with the prosecution against Bankman-Fried.

Prosecutors requested restrictions on extrajudicial statements to ensure a fair trial. Such leaks could not only prejudice jurors but also discourage other witnesses from testifying, they said.

“In addition to tainting the jury pool, the effect, if not the intent, of the defendant’s conduct is not only to harass Ellison, but also to deter other potential trial witnesses from testifying,” said attorney Damian Williams in the filing. “These witness concerns will only be heightened if witnesses are made to fear that a consequence of testifying against the defendant may include personal humiliation and efforts to discredit their reputation that go beyond what the rules of evidence might permit during cross examination.”

More Woes for Bankman-Fried

In May 2023, the legal team representing the disgraced co-founder approached Judge Lewis Kaplan from the US District Court for the Southern District of New York, requesting the dismissal of most charges against Bankman-Fried.

SBF’s Defense Seeks to Dismiss Most Criminal Charges Against FTX Founder

Bankman-Fried’s lawyers are arguing the FTX collapse was the result of a “crypto winter” rather than any malicious intent.

Source: Decrypt

— Wen3 🚀 (@Wen3_AI) May 9, 2023

In May 2023, Bankman-Fried’s legal team sought dismissal of most charges against him, arguing double jeopardy, but Judge Kaplan denied the motions, finding them without merit in a 41-page decision.

Potential consequences for Bankman-Fried are severe, facing over 100 years in prison if convicted on all counts, including fraud-related charges for alleged misuse of customer assets.

He is currently under house arrest, and the criminal trial is scheduled for October, with his lawyers requesting a delay in the proceedings.