The US Department of Justice (DOJ) has charged FTX co-founder Sam Bankman-Fried (SBF) for leaking private discussions and journals of Alameda Research CEO Caroline Ellison. The lawsuit alleged that SBF disclosed such private conversations to “interfere with a fair trial by an impartial jury.”
“The defendant’s purpose in sharing these materials is plain. 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, the DOJ stated.
On Wednesday, the news outlet, The New York Times, published an article about a personal note written by Ellison, whom it described as a “star witness” in the FTX case in October. Ellison had already pleaded guilty to wire fraud charges and promised to work closely with prosecutors.
SBF Seeks to Discredit Ellison: DOJ
The US DOJ stated that SBF’s move to release such personal content was to discredit Ellison and make her statements as a witness seem biased.
“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,” the DOJ noted.
Ellison allegedly had a romantic relationship with the indicted FTX former boss. Their relationship had several make-and-break moments, and Ellison, at one point, doubted if she was capable of running the hedge fund firm.
As the NYT article revealed, in February and April 2022, Ellison made certain comments on her mental health and leadership competence. She once stated that running Alameda doesn’t feel like something I’m that comparatively advantaged at or well suited to do.
DOJ Seeks to Stop Interference
In the lawsuit, the DOJ stated that it seeks to prevent SBF and his defendants from interfering unfairly in the ongoing case. According to the US law enforcer, leaks like this would scare other witnesses and might stop them from testifying.
SBF is looking to avoid up to 100 years of jail time that awaits him if convicted of the multiple charges filed against him. With all his close associates pleading guilty, the escape line seems slim for him now.
