Sam Bankman-Fried Accepts Gag Order To Ban Him Revealing To The Media

Key Points:

• FTX founder Sam Bankman-Fried (SBF) agreed to a gag order, which will largely prevent him from discussing his case publicly.
• The judge ordered the SBF to appear in federal court in New York on Wednesday.
• Prosecutors previously accused him of providing Caroline Ellison’s private documents to the media in an attempt to discredit her as a potential witness in a fraudulent criminal trial.

According to Bloomberg, Sam Bankman-Fried, the founder of FTX, has consented to a gag order that significantly limits his ability to publicly discuss his case after prosecutors accused him of attempting to cast doubt on their crucial witness, Caroline Ellison.

The order still needs approval from US District Judge Lewis A. Kaplan, who asked the SBF to appear in federal court in New York on Wednesday.

Under the proposed order, filed Monday in Manhattan, the SBF, and other parties would be barred from discussing with the media any matter that might impede a fair trial, including statements about witness reliability, information not accepted at trial, and anything that might affect public perception of the case.

According to earlier reports, US prosecutors have accused the SBF of providing her ex-girlfriend’s private documents to the media to discredit her as a potential witness in a fraudulent criminal trial.

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

In the letter, Bankman-Fried’s attorney confirmed he spoke with and provided personal documents to the New York Times, including documents written by a former colleague, Caroline Ellison, who has cooperated with the US government.

“Bankman-Fried did not violate the protective order in this case, nor did he violate the conditions of his bail, nor did he violate any laws or rules governing his conduct,” Bankman-Fried attorney Mark Cohen said in the letter.

An article published by the New York Times titled “Inside Caroline Ellison’s Private Writings, Star Witness in the FTX Case” reported excerpts from Ellison’s personal Google documents before the FTX collapse, in which she spoke of how she was “quite dissatisfied and overwhelmed” with her job and feeling “hurt after/rejected” by Bankman.

Ellison led Bankman-Fried’s hedge fund Alameda Research, pleaded guilty to defrauding investors, and agreed to cooperate with prosecutors. In December, Bankman-Fried said he and Ellison were romantically involved but did not provide further details.

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