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☆ Fact Check-No charges against FTX ex-CEO Sam Bankman-Fried dropped as of June 22
▼ + stars: | 2023-06-22 | by ( Reuters Fact Check | ) www.reuters.com time to read: +3 min

As of June 22, 2023, none of the 13 charges against Bankman-Fried have been dropped by federal prosecutors in Manhattan. Bankman-Fried faces a 13-count indictment for allegedly scheming to defraud FTX investors. Federal prosecutors in Manhattan said those five charges would be dropped if the Bahamas did not consent to them. In mid-June, noting that it was unclear when the Bahamas would consent, prosecutors supported the separate March 2024 trial for the additional charges (here). None of the 13 criminal charges against FTX Founder Sam Bankman-Fried have been dropped as of June 22, 2023.

Persons: Sam Bankman, District Judge Lewis Kaplan, ’, Fried, Read Organizations: Bankman, District, Biden, Facebook, U.S, Prosecutors, Republicans, Reuters, FTX Locations: Manhattan, U.S, Palo Alto , California, Bahamas

June 21 (Reuters) - Law firm Fenwick & West has hired its own outside legal team as it faces scrutiny over its role advising now-bankrupt cryptocurrency exchange FTX, including from the company's indicted founder Sam Bankman-Fried. Silicon Valley-founded Fenwick has turned to Gibson, Dunn & Crutcher as its advice becomes a focus of Bankman-Fried’s criminal defense, according to court documents and sources familiar with the situation. Nancy Hart and Kevin Rosen, leaders in Gibson Dunn's prominent law firm defense practice, are representing Fenwick on issues related to FTX, including in the Bankman-Fried criminal case and a federal class action lawsuit, sources said. The firm also counseled Bankman-Fried’s hedge fund Alameda Research, which is at the center of the criminal case against him. Fenwick, one of at least four major law firms to advise FTX, is not the only firm to be targeted by Bankman-Fried.

Persons: Fenwick, Sam Bankman, Gibson, Dunn, Nancy Hart, Kevin Rosen, Gibson Dunn, FTX, Bankman, Fried, Fenwick’s, Sullivan, Cromwell, Andrew Goudsward Organizations: West, Crutcher, Alameda Research, Prosecutors, Bankman, Thomson Locations: Silicon, Alameda, New York, Florida

☆ Bahamas court boosts Bankman-Fried’s challenge to post-extradition charges
▼ + stars: | 2023-06-13 | by ( ) edition.cnn.com time to read: +2 min

A Bahamas court on Tuesday temporarily barred the country’s government from agreeing to let US prosecutors pursue part of their criminal case against Sam Bankman-Fried, the indicted founder of now-bankrupt cryptocurrency exchange FTX. Those charges were not in Bankman-Fried’s initial eight-count indictment last December, which focused on the collapse of FTX the previous month, but they were added after his extradition. The Bahamas Supreme Court said the country’s foreign affairs minister and attorney general could not consent to the new charges until Bankman-Fried had a formal chance to object. In papers filed late Monday in Manhattan federal court, Bankman-Fried’s lawyers said a sixth charge alleging US campaign finance violations should also be dismissed because the Bahamas did not consent to it. His lawyers want the six charges dismissed, or tried separately from charges of stealing from customers and lying to investors and lenders.

Persons: Sam Bankman, FTX, Fried, Loren Klein, Lewis Kaplan Organizations: US, Prosecutors Locations: Manhattan, Caribbean, Bankman, Bahamas, United States

CompaniesCompanies Law Firms FTX Trading Limited FollowMay 31 (Reuters) - Sam Bankman-Fried is seeking documents from a law firm that advised his defunct FTX cryptocurrency exchange, saying in a court filing that they could help him beat fraud charges. The former crypto mogul said the documents could prove that he relied on legal advice from Silicon Valley law firm Fenwick & West and did not believe he was breaking the law. Manhattan federal prosecutors must prove he knew his conduct was illegal. Bankman-Fried, the 31-year-old founder of now-defunct FTX Trading, has pleaded not guilty in Manhattan federal court to 13 counts of fraud, conspiracy, illegal campaign contributions and foreign bribery. Prosecutors allege Bankman-Fried stole billions of dollars in customer funds to plug losses in his hedge fund Alameda Research, which collapsed along with FTX last year after its risky cryptocurrency bets backfired.

Persons: Sam Bankman, Fried, Fenwick, FTX, District Judge Lewis Kaplan, ”, “ meritless ”, Palo, Jack Queen Organizations: West, Prosecutors, Alameda Research, U.S, District, Thomson Locations: Silicon Valley, Manhattan, Palo Alto , California, Bahamas

☆ Bankman-Fried hints at blame-the-lawyers defense in criminal case
▼ + stars: | 2023-05-31 | by ( Alison Frankel | Thomson Reuters | Alison Frankel Has Covered High-Stakes Commercial Litigation As A Columnist For Reuters Since A Dartmouth College Graduate | ) www.reuters.com time to read: +7 min

The plaintiffs' lawyer who filed that case, Kerry Miller of Fishman Haygood, told me on Wednesday that he plans to monitor the Bankman-Fried criminal case for any Fenwick & West documents that might boost the class allegations. Companies are typically reluctant to waive privilege for fear that their lawyers’ documents might be used in other cases. That assertion seems to hint that Bankman-Fried will claim that he can personally waive privilege over some Fenwick & West communications. The strongest defense case, Sandick said, would probably feature testimony from a Fenwick & West witness to bolster testimony from Bankman-Fried about his reliance on advice from FTX lawyers. But contradictory testimony from a law firm witness could undermine Bankman-Fried’s advice-of-counsel defense.

Persons: Sam Bankman, Gresser, Fenwick, Fried, West, FTX, “, ”, Bankman, District Judge Lewis Kaplan, Kaplan, Kerry Miller, Fishman Haygood, Cohen, Sullivan, Cromwell, Harry Sandick, Patterson Belknap Webb, Tyler, ” Sandick, Sandick, ‘, ’ ”, Alison Frankel Organizations: Cohen, Fenwick & West, Alameda Research, Silvergate Bank, West, U.S, Prosecutors, Alameda, District, District Judge Lewis Kaplan of, Fenwick &, Manhattan U.S, Companies, Defense, Thomson, Reuters Locations: Fenwick, FTX, Alameda, Manhattan, California, District Judge Lewis Kaplan of Manhattan

More than six million pages of emails, Slack messages and other digital records. For months, federal prosecutors building the criminal case against the fallen cryptocurrency executive Sam Bankman-Fried have assembled a vast and unusually varied array of evidence. The documents include crypto transaction logs and encrypted group chats from Mr. Bankman-Fried’s collapsed exchange, FTX, as well as strikingly personal reflections recorded by a key witness in the case. The mountain of evidence ranks among the largest ever collected in a white-collar securities fraud case prosecuted by the federal authorities in Manhattan, according to data provided by a person with knowledge of the matter. In the 2004 securities fraud prosecution of Martha Stewart, for example, prosecutors produced 525,000 pages of evidence to the defense team, but the numbers have increased significantly in recent years.

Persons: Slack, Sam Bankman, Bankman, Fried’s, Martha Stewart Locations: Manhattan

May 9 (Reuters) - Indicted FTX founder Sam Bankman-Fried has renewed his attacks on the bankrupt cryptocurrency exchange’s law firm as he mounts his defense against a raft of fraud, money laundering and campaign finance charges. Bankman-Fried late Monday asked a judge to designate FTX’s current leadership and the exchange’s attorneys at law firm Sullivan & Cromwell as part of the “prosecution team” in the criminal case against him. FTX and Sullivan & Cromwell provided such extensive cooperation to the government that prosecutors had “effectively deputized the company to aid the prosecution,” Bankman-Fried argued. Sullivan & Cromwell, a prominent Wall Street law firm with about 900 lawyers, represented FTX on transactions and regulatory matters before its collapse last year. In Monday’s filing, Bankman-Fried’s defense team said Ray and FTX’s bankruptcy lawyers have acted as “public mouthpieces” for the prosecution and have turned over “cherry-picked” information incriminating Bankman-Fried.

New York CNN —Lawyers for FTX founder Sam Bankman-Fried on Monday filed motions to dismiss the US government’s fraud charges against him. Bankman-Fried’s attorneys said the government failed to properly explain what offenses the former CEO of the bankrupt crypto exchange committed. Bankman-Fried has pleaded not guilty to the 13 charges. Prosecutors allege that Bankman-Fried stole FTX customer deposits to finance risky bets at his hedge fund, Alameda Research, and to funnel contributions to American politicians. Three of Bankman-Fried’s former business partners — Gary Wang, Caroline Ellison and Nishad Singh — have pleaded guilty to numerous charges and are cooperating with investigators.

☆ Sam Bankman-Fried, in First Detailed Defense, Seeks to Dismiss Charges
▼ + stars: | 2023-05-08 | by ( David Yaffe-Bellany | Matthew Goldstein | ) www.nytimes.com time to read: +1 min

Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has issued his first detailed legal defense since prosecutors accused him of fraud, seeking to dismiss several of the charges and claiming that the high-powered law firm representing FTX in its bankruptcy has been doing the government’s bidding. In court filings late Monday, lawyers for Mr. Bankman-Fried said FTX and its lawyers at the firm Sullivan & Cromwell had become de facto agents of federal prosecutors building the criminal case against him and might be withholding crucial evidence. “FTX’s legal advisors went to the government to accuse Mr. Bankman-Fried behind his back without knowing the full facts, and ultimately forced him to step down as C.E.O.,” the lawyers wrote. For months, Sullivan & Cromwell has funneled documents and other evidence to the prosecution, the filings say. Mr. Bankman-Fried’s lawyers claimed that prosecutors had been seeking only the most incriminating documents, even though FTX might also be sitting on material that could help the defense.

☆ At FTX, Multimillion-Dollar Expenses Were Approved by Emoji
▼ + stars: | 2023-04-10 | by ( Caitlin Ostroff | Vicky Ge Huang | ) www.wsj.com time to read: 1 min

FTX’s failures are rooted in “hubris, incompetence, and greed,” the crypto exchange’s new management team said in a report outlining scathing details about the lack of financial controls and record-keeping under founder Sam Bankman-Fried . Mr. Bankman-Fried’s crypto hedge fund Alameda Research often had difficulty understanding what its positions were, let alone hedging or accounting for them, the report said.

☆ Sam Bankman-Fried pleads not guilty to new federal charges
▼ + stars: | 2023-03-30 | by ( Kara Scannell | ) edition.cnn.com time to read: +2 min

New York CNN —Sam Bankman-Fried, the founder of failed cryptocurrency trading platform FTX, pleaded not guilty to five new federal charges of fraud and conspiracy, including one count of conspiring to bribe Chinese government officials. An attorney for Bankman-Fried entered the plea on his behalf of his client, who was seated beside him in the New York courtroom Thursday. He previously pleaded not guilty to eight other charges stemming from what prosecutors have described as one of the biggest financial frauds in US history. In the latest indictment, prosecutors alleged that Bankman-Fried sought to pay off Chinese officials to unfreeze accounts belonging to his hedge fund, Alameda Research. Three of Bankman-Fried’s former business partners — Gary Wang, Caroline Ellison and Nishad Singh — have pleaded guilty to numerous charges and are cooperating with investigators.

☆ Judge concerned Sam Bankman-Fried is too ‘technologically savvy,’ could find a way around tech restrictions
▼ + stars: | 2023-03-10 | by ( Lauren Del Valle | ) edition.cnn.com time to read: +2 min

CNN —United States District Judge Lewis Kaplan indicated at a hearing Friday he might modify FTX founder Sam Bankman-Fried’s bail conditions, but only after attorneys further tighten the restrictions on Bankman-Fried’s access to technology. Kaplan said he’s still not convinced that the founder of bankrupt crypto trading platform FTX wouldn’t be able to circumvent the more-restrictive bail conditions that were filed last week. “If he’s determined and inventive and I suspect he’s very inventive and technologically savvy he could find a way around it and conceivably not get caught,” Kaplan said in court Friday. Bankman-Fried, who did not attend Friday’s hearing, is currently under house arrest at his parents’ home in Palo Alto, Calif. Judge Kaplan asked the defense to submit an updated bail modification order that would tighten the restrictions to address his concerns.

☆ Prosecutors want Sam Bankman-Fried to use a flip phone as part of a more restrictive bail package
▼ + stars: | 2023-03-04 | by ( Kara Scannell | ) edition.cnn.com time to read: +2 min

CNN —The use of a flip phone, or some non-smartphone, is one of several restrictions that prosecutors and Sam Bankman-Fried’s attorneys are jointly asking the judge to approve. Bankman-Fried also would be restricted from scrolling the internet, with his access limited to court-approved websites. The lawyers proposed several sites to help prepare his defense, including YouTube, read-only websites showing crypto prices, and research websites. Bankman-Fried also asked to view others for his personal use, including news sites, Netflix, Spotify, Uber Eats, Amazon and baseball and football sites. The judge previously raised concerns about Bankman-Fried’s access to his parents’ computers, cell phones and internet.

☆ Former director of engineering at FTX Nishad Singh pleads guilty to criminal charges
▼ + stars: | 2023-02-28 | by ( Kara Scannell | ) edition.cnn.com time to read: +4 min

New York CNN —A former top executive of failed cryptocurrency trading platform FTX pleaded guilty and is cooperating with federal prosecutors investigating the alleged billion-dollar fraud at the now collapsed exchange. Nishad Singh, the former director of engineering at FTX, pleaded guilty to six conspiracy charges, including conspiracy to commit wire fraud, conspiracy to commit money laundering and conspiracy to violate federal campaign finances laws. Singh is the third top executive and close confidante of FTX founder Sam Bankman-Fried to plead guilty and cooperate with prosecutors. Gary Wang, co-founder of FTX, and Caroline Ellison, the former head of FTX’s sister hedge fund Alameda Research, both pleaded guilty last year and are cooperating against Bankman-Fried. New York state election records show Singh made a $107,000 donation to the committee on October 28, 2022.

☆ Sam Bankman-Fried’s Public Defense Shuns Traditional Legal Strategies
▼ + stars: | 2023-02-22 | by ( James Fanelli | Corinne Ramey | ) www.wsj.com time to read: 1 min

When facing criminal charges, most defendants all but glue their mouths shut before trial at the insistence of their lawyers. Sam Bankman-Fried has chosen the opposite approach. The FTX founder, whose reign as a star of the crypto world collapsed along with his exchange in November, has maintained a prominent public presence since his extradition from the Bahamas in December. The 30-year-old has launched a Substack newsletter, been active on Twitter and continued to give media interviews, in an effort to defend himself against federal charges that he stole billions of dollars from FTX customers and defrauded investors and lenders.

☆ Bankman-Fried lawyers say they will pay for technical expert to aid judge on bail terms
▼ + stars: | 2023-02-21 | by ( Kara Scannell | ) edition.cnn.com time to read: +2 min

In a brief letter, Bankman-Fried’s attorneys informed Judge Lewis Kaplan that they agreed with his proposal for a security expert who would work solely for the judge. At a bail hearing last week, Judge Kaplan suggested Bankman-Fried’s lawyer hire a technical expert to help him navigate issues of encryption, disappearing messages and virtual private networks, or VPN, that have presented challenges. Prosecutors asked for strict bail conditions limiting the crypto entreprenuer’s use of messaging platforms after becoming alarmed that Bankman-Fried contacted a former FTX employee who is a government witness. Their concerns heightened when they discovered Bankman-Fried used a VPN twice in the past few weeks, including just days after a bail hearing in which the judge expressed concern about the use of encryption. The judge said the outreach could be probable cause to believe Bankman-Fried committed a crime while out on bail.

☆ Judge Seeks Tougher Bail Restrictions for Sam Bankman-Fried
▼ + stars: | 2023-02-17 | by ( Corinne Ramey | James Fanelli | ) www.wsj.com time to read: 1 min

A federal judge on Thursday voiced growing discomfort with Sam Bankman-Fried ’s bail conditions, ordering prosecutors and the defense to hammer out appropriately tough restrictions on the FTX founder’s access to electronic devices as he awaits trial on fraud charges. The command, from U.S. District Judge Lewis Kaplan , came after weeks of wrangling over the terms of Mr. Bankman-Fried’s house arrest. Federal prosecutors in January said he contacted a potential witness from his parents’ Palo Alto, Calif., home, which they said could constitute tampering. They also objected to his use of encrypted messaging applications like Signal and this week added a new concern, about Mr. Bankman-Fried accessing the internet through a virtual private network, or VPN, that obscures his location.

☆ BlockFi Seeks to Strip Sam Bankman-Fried’s Investment Vehicle of Bankruptcy Protections
▼ + stars: | 2023-02-17 | by ( Andrew Scurria | ) www.wsj.com time to read: 1 min

Crypto lender BlockFi Inc. has asked for a court ruling stripping Sam Bankman-Fried‘s offshore investment vehicle of the protections of chapter 11, citing the recent seizure of its assets by federal prosecutors. BlockFi, itself bankrupt since November, sought Thursday to dismiss the bankruptcy case of Emergent Fidelity Technologies Ltd., the offshore investment vehicle that Mr. Bankman-Fried used to purchase a 7.6% stake in Robinhood Markets Inc. The chapter 11 case serves little purpose and was only filed to undermine BlockFi’s...

☆ Two Stanford Academics Helped Secure Sam Bankman-Fried’s Release on Bail
▼ + stars: | 2023-02-15 | by ( James Fanelli | Corinne Ramey | ) www.wsj.com time to read: 1 min

Two Stanford University academics helped secure FTX founder Sam Bankman-Fried’s release on bond while he awaits trial on criminal charges. Two Stanford University academics helped secure FTX founder Sam Bankman-Fried ’s release on bond while he awaits trial on criminal charges related to the collapse of the crypto exchange, according to court filings unsealed Wednesday. Stanford Law School dean emeritus Larry Kramer signed a $500,000 bond in January on behalf of Mr. Bankman-Fried while Andreas Paepcke , a senior research scientist at the university, signed a $200,000 bond, records show. Mr. Bankman-Fried’s parents are both professors at the law school.

☆ Sam Bankman-Fried’s bond guarantors released
▼ + stars: | 2023-02-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSam Bankman-Fried’s bond guarantors releasedThe names of two of FTX co-founder Sam Bankman-Fried’s guarantors were made public on Wednesday. CNBC's Eamon Javers has the details.

New York CNN —A federal judge released the names of two people who co-signed Sam Bankman-Fried’s $250 million bond, which allowed him to be released on house arrest while he awaits trial on federal fraud and conspiracy charges. Bankman-Fried’s parents, both Stanford law professors, are also guarantors, and used their Palo Alto, California, home to secure the bond. In a statement to CNN, Kramer described Joe Bankman and Barbara Fried as close friends since the mid-1990s. The release of the guarantors’ names came a day before Bankman-Fried was set to appear in New York federal court for a bond hearing. Bankman-Fried’s lawyers said in a letter to the judge that Bankman-Fried used the VPN to access an football games via an international subscription.

☆ Judge orders Sam Bankman-Fried back to court after learning how he accessed the internet remotely
▼ + stars: | 2023-02-14 | by ( Kara Scannell | ) edition.cnn.com time to read: +2 min

New York CNN —A federal judge ordered Sam Bankman-Fried back to court this week after learning that the founder of crypto trading platform FTX accessed the internet in a way the government can’t track. Bankman-Fried is currently under house arrest at his parents’ home in Palo Alto, Calif. Overnight Prosecutors alerted the judge to Bankman-Fried’s use of a VPN in late January and early February. Prosecutors and Bankman-Fried’s lawyers asked the judge for more time to work out new bail terms, but the judge rejected that, calling them back to court for the second time in a week. The judge previously expressed concern over Bankman-Fried’s use of encryption and whether the government could track what he was doing while out on bail.

☆ Judge Questions Sam Bankman-Fried’s Access to Messaging Apps
▼ + stars: | 2023-02-09 | by ( Corinne Ramey | James Fanelli | ) www.wsj.com time to read: 1 min

A federal judge on Thursday questioned whether proposed restrictions on Sam Bankman-Fried ‘s ability to communicate were tough enough, grilling lawyers about the details of the messaging applications the FTX founder has been using. U.S. District Judge Lewis Kaplan held a hearing after federal prosecutors recently requested the judge limit Mr. Bankman-Fried, who is facing fraud charges, from accessing encrypted messaging apps after they said he contacted a potential witness in the case.

☆ Sam Bankman-Fried is back in court after prosecutors raise witness-tampering questions
▼ + stars: | 2023-02-09 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

New York CNN —Sam Bankman-Fried appeared in a New York federal court on Thursday, just over a week after the judge in the FTX founder’s fraud case tightened the bail conditions in response to allegations of witness tampering. Prosecutors said the former executive, identified as “Witness-1,” could be called to testify against Bankman-Fried in a trial. In the message, Bankman-Fried wrote: “I know it’s been a while since we’ve talked. FTX, the cryptocurrency exchange co-founded by Bankman-Fried in 2019, collapsed into bankruptcy in November amid a liquidity crisis fueled by allegations about improper financial ties with Alameda, Bankman-Fried’s ostensibly separate hedge fund. Federal prosecutors now allege that the firm, under the direction of Bankman-Fried, stole customer deposits to fund unrelated activities, such as political donations, luxury real estate purchases and covering losses at Alameda, Bankman-Fried’s hedge fund.

☆ Robinhood Will Try to Buy Back Sam Bankman-Fried’s Shares
▼ + stars: | 2023-02-08 | by ( Jack Pitcher | ) www.wsj.com time to read: 1 min

Robinhood announced its share plans in its quarterly earnings release. Shares in Robinhood Markets Inc. jumped in after-hours trading Wednesday after the company said it plans to pursue repurchasing the shares that Sam Bankman-Fried bought last year. Mr. Bankman-Fried disclosed in May that he had bought a 7.6% stake in Robinhood, calling it an “attractive investment.” The share price initially rallied, jumping 25% the day after Mr. Bankman-Fried revealed his investment.

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