Last updated on August 8, 2023
Cohen & Gresser, the law firm representing former FTX CEO Sam Bankman-Fried (SBF), has denied accusations that he attempted to intimidate Caroline Ellison, the former leader of Alameda Research, or influence the jury’s perception through interactions with a New York Times reporter. SBF is facing multiple fraud charges and is accused of being responsible for the collapse of the once-prominent crypto exchange.
In a letter to Judge Lewis Kaplan, SBF’s attorneys, Mark Cohen and Christian Everdell, argued against his detention and bond revocation. They claimed that SBF’s communication with the journalist was a legitimate exercise of his rights to comment on an ongoing article, especially since the reporter had other sources. They emphasized SBF’s right to talk to the press about his case to protect his reputation, as long as it does not interfere with the course of justice.
Cohen & Gresser criticized the government’s basis for revoking SBF’s bail, calling it weak and relying on assumptions, unsupported inferences, and innuendo. They pointed out that even under the government’s view of the facts, SBF’s contact with the reporter alone is not enough to justify his detention.
The law firm also argued that imprisoning SBF, as requested by the US Department of Justice, would hinder his ability to fully participate in his defense. They highlighted the fact that federal prison inmates are denied internet access, which would restrict SBF’s access to crucial discovery materials and make it difficult to review the remaining evidence effectively.
Notably, leaking information from Ellison’s private diary is just one of the charges against SBF. He is accused of orchestrating a large-scale scam that led to the downfall of FTX in November of the previous year.
Ellison, who was in charge of Alameda Research, has pleaded guilty to participating in the fraud that contributed to the collapse of FTX and the subsequent losses suffered by investors. She has agreed to cooperate with authorities and is expected to testify as a witness in SBF’s trial, which is scheduled to commence on October 2.
The leaked data from Ellison’s diary, as reported by The New York Times, revealed her dissatisfaction and feeling overwhelmed with her job months before FTX’s crash. She had also expressed decreased enthusiasm for Alameda Research following her breakup with SBF and questioned her capabilities as the leader of the organization.
Ellison initially faced a potential sentence of 101 years in jail before opting to cooperate fully with US authorities. The exact punishment she will receive remains uncertain, with some experts suggesting she may only receive probation for pleading guilty and testifying in SBF’s trial.
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