In a Sept. 26 filing, Choose Lewis Kaplan, presiding over the prison case in opposition to Sam Bankman-Fried, the previous CEO of cryptocurrency trade FTX, issued rulings on the admissibility of sure varieties of proof in his forthcoming prison trial.
Choose Kaplan started by ruling that authorities prosecutors are permitted to introduce direct proof of Bankman-Fried’s alleged crimes.
This consists of proof of actions both licensed by, directed by, or carried out by Bankman-Fried. Particular proof issues false statements to an unnamed financial institution, unlawful marketing campaign financing, bribery of a Chinese official, the creation and manipulation of FTX’s FTT token, and prioritization of funds to sure collectors after FTX’s collapse.
Notably, the decide declined to rule instantly on the admissibility of proof associated to auto-delete policies that erased FTX communications. Choose Kaplan mentioned that this can be admissible with a purpose to present that Bankman-Fried knew of and supposed his alleged crimes. Nevertheless, he famous that Bankman-Fried intends to introduce proof that the auto-delete insurance policies have been launched in good religion and with counsel involvement.
The decide famous that any danger {that a} jury may convict Bankman-Fried solely on specific items of proof might be “foreclosed by an acceptable instruction.”
Choose denies sure authorities requests
Choose Kaplan explicitly denied a request by which prosecutors aimed to find out that whole classes of out-of-court statements and excerpted out-of-court statements are permissible. This space largely consists of statements from Bankman-Fried’s former colleagues, together with however not restricted to Caroline Ellison. The decide mentioned that every piece of proof on this space have to be admitted individually.
Prosecutors moreover requested for the decide to find out that sure paperwork are self-authenticating and in want of decreased cross-examination from document custodians. Choose Kaplan as soon as once more denied this authorities movement.
Prosecutors additionally requested for Bankman-Fried to be precluded from introducing sure proof deemed “irrelevant or unfairly prejudicial.” Choose Kaplan largely granted or didn’t instantly situation a ruling on these requests. Nevertheless, he did reject one request on this space: opposite to the federal government’s needs, Bankman-Fried might be permitted to cross-examine witnesses in regards to the phrases of service on FTX’s web site.
On the same notice, Bankman-Fried might be allowed to cross-examine witnesses about paperwork and matters protected by the attorney-client privilege.
Lastly, Choose Kaplan denied a movement to stop Bankman-Fried from asking witnesses about their very own leisure drug use — a matter seemingly associated to reports in 2022 that urged such exercise amongst FTX insiders. Although Bankman-Fried might be allowed to boost this matter, he might want to present discover earlier than doing so in entrance of the jury.
Choose largely denies SBF’s requests
Choose Kaplan subsequent dominated on motions from Bankman-Fried and his authorized group. The defendant largely aimed to stop prosecutors from introducing sure proof.
Critically, Bankman-Fried aimed to stop the federal government from introducing info associated to the chapter of FTX and Alameda Research. Bankman-Fried additionally tried to dam the introduction of proof associated to his personal resignation from FTX.
Choose Kaplan denied these requests. He mentioned that precluding this proof would “go too far” and famous that the undisputed info surrounding the chapter and resignation are carefully linked with Bankman-Fried’s alleged crimes. As soon as once more, Kaplan mentioned that the chance {that a} jury may convict Bankman-Fried solely on this proof might be mitigated.
Bankman-Fried moreover tried to stop the federal government from introducing statements and promoting supplies associated to FTX.US, an American firm that largely operated individually from FTX. The decide denied this request, dismissing Bankman-Fried’s concern that the proof that might be offered by the federal government could lead on an affordable particular person to imagine that the FTX.US materials pertains to FTX itself.
Bankman-Fried’s trial is about for Oct. 3 and can concern expenses associated to fraud and cash laundering. A later trial will concern campaign financing and different expenses.
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