In a mind-boggling twist, FTX kingpin Sam Bankman-Fried, or SBF, finds himself trapped in an impasse. U.S. prosecutors have unveiled their intention to employ the personal diary of Caroline Ellison, former CEO of Alameda Research, FTX’s sister trading firm, as a piece of evidence against the indicted founder. This unexpected turn has significantly altered the dynamics of SBF’s defense strategy.
The once-private relationship between SBF and Caroline Ellison has evolved into a focal point of the Department of Justice’s expanding case. In a filing dated August 14, submitted to the U.S. District Court for the Southern District of New York, prosecutors unveiled plans to release a collection of Ellison’s personal to-do lists and notes from her tenure at Alameda as crucial evidence.
Of particular interest is a section titled “Things Sam is Freaking Out About,” which contains pivotal exchanges between Bankman-Fried and Ellison discussing matters pertinent to SBF’s business anxieties. These conversations encompass fundraising initiatives, trading safeguards, and the adverse media attention stemming from the affiliation between Alameda and FTX.
Prosecutors asserted that these notes are not mere “inadmissible hearsay.” Instead, they emphasized that Ellison meticulously documented these exchanges to “memorialize the information provided to her” and to “guide her role within the alleged conspiracy.”
Last month, the U.S. Department of Justice [DOJ] sought an order restraining SBF and other involved parties following the publication of a New York Times article that revealed personal Google documents written by Ellison at the behest of the former FTX founder.
SBF Found Guilty Of Witness Tampering
Prosecutors accused Bankman-Fried of intentionally leaking his former girlfriend’s private diary entries to The New York Times in an attempt to shift blame onto her for the downfall of FTX.
Following U.S. District Court Judge Lewis Kaplan’s ruling, which found him guilty of attempting to influence witnesses, the embattled crypto billionaire was remanded in custody on August 11. Kaplan noted that there is probable cause to believe SBF tampered with witnesses on multiple occasions. His legal team has refuted the allegations.
Caroline Ellison, previously at the helm of Alameda Research, a hedge fund co-founded by SBF, had faced fraud charges herself and was expected to testify against Bankman-Fried in court. This complex narrative highlights the unforeseen turns that legal battles can take within the cryptocurrency realm.