Bankman-Fried Trial: Judge Limits Defense Strategies and Evidence
In a recent court order, U.S. District Judge Lewis Kaplan granted some of the prosecutors’ requests to restrict certain defense strategies and evidence in the upcoming trial of Sam Bankman-Fried, the founder of FTX cryptocurrency exchange. Bankman-Fried’s lawyers are now prohibited from mentioning his pretrial detention, as well as referencing his family and personal life.
The judge also disallowed arguments about FTX customers’ negligence or Bankman-Fried’s intention to repay any allegedly stolen funds, deeming them irrelevant or prejudicial. However, Kaplan did not prohibit questions about recreational drug use by witnesses, but the defense must notify him and the prosecutors before raising this topic.
The rulings were made in response to requests from both prosecutors and defense lawyers to limit arguments and evidence in the New York trial, which centers around allegations of a multibillion-dollar fraud that led to the collapse of FTX in November 2022. Bankman-Fried, who pleaded not guilty to charges of defrauding investors and looting customer deposits, was initially released on a $250 million bond that was later revoked.
Judge Allows Government’s Evidence of FTT Market Manipulation
Judge Kaplan ruled that evidence of alleged tampering with cryptocurrency tokens, which reportedly altered Alameda Research’s financial records, is admissible in the trial. He believes this action is directly linked to the main accusation in the case and demonstrates a close relationship between Bankman-Fried and the former CEO of Alameda Research, Caroline Ellison.
Despite potential bias, Kaplan considers this information crucial for proving the case and allowed it as evidence. The ruling followed numerous pretrial motions from both prosecutors and defense lawyers vying for an advantage. Meanwhile, Bankman-Fried’s legal team has made multiple unsuccessful attempts to secure his release before the trial.
Jury selection is scheduled for October 3, 2023, with opening statements expected later in the month.
Hot Take: Bankman-Fried Trial Faces Restrictions and Admissible Evidence
The upcoming trial of FTX founder Sam Bankman-Fried will proceed with certain limitations on defense strategies and evidence. Judge Kaplan’s ruling prohibits references to Bankman-Fried’s pretrial detention, family, and personal life. Arguments about customer negligence and intentions to repay stolen funds are also disallowed. However, questions about witnesses’ recreational drug use are allowed with prior notification to the judge and prosecutors.
Additionally, the judge deemed evidence of alleged market manipulation admissible, as it directly connects to the main accusation against Bankman-Fried and highlights his close relationship with Alameda Research’s former CEO. Despite attempts by both sides to sway the case in their favor, the trial will move forward with jury selection commencing on October 3, 2023.
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