Crypto Updates

Prosecutors Propose Gag Order on FTX Founder to Stop Contact with Media

Troubled FTX Files for Bankruptcy as CEO Sam Bankman-Fried Resigns

Lewis
Kaplan, the judge presiding over the case between the United States and Sam
Bankman-Fried, the Founder of bankrupt crypto exchange, FTX, may consider
issuing a gag order proposed by the US Attorney’s Office, according to media
reports. US prosecutors reportedly filed a draft of the order in a
letter to the US district court in New York today (Monday).

The proposed order comes days after the Department of Justice (DoJ) accused
Bankman-Fried
of sharing with the media personal documents belonging to
Caroline Ellison, his former ally and romantic partner. The order, according to
CoinDesk, will bar parties, attorneys and agents involved in the case from
“publicly disseminating or discussing with any public communications media
anything about the case which could interfere with a fair trial.”

The order will also prohibit the parties from making statements intended to influence public opinion on the
merit of the case. In addition, it will forbid statements about the
identity, testimony or credibility of prospective witnesses, particularly information
that has not been considered admissible at trial. However, the order does
not prohibit speaking on information already available in public court filings
or claims of innocence, according to Cointelegraph.

Finance
Magnates
reported that the DoJ alleged that ‘personal and raw’ details
about Ellison contained in a New York Times article published last week were
disclosed by Bankman-man. In the court filing, the federal prosecutor contended
that Bankman-Fried made the move to interfere with a ‘fair trial’ by an impartial jury.
He also allegedly sought to publicly discredit a government witness and cast
Ellison ‘in a poor
light’.

As a
result, the DoJ asked the court to issue an order that limits extrajudicial
statements by parties and witnesses likely to interfere with a fair trial. The enforcement agency noted that Ellison, who
pleaded guilty to criminal charges last year
, is cooperating with public authorities to testify against Bankman-Fried in his
upcoming trial billed to start in October.

Bankman-Fried ‘Did Nothing Wrong’

Meanwhile,
Bankman-Fried’s lawyers, in response to federal prosecutors, said the crypto
exchange founder “did
nothing wrong”. In a filing submitted on Sunday, the crypto entrepreneur’s counsel…

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