Crypto Scandal Unfolds: Ex-FTX CEO's Secret Weapon Could Change the Game
Former FTX CEO Sam Bankman-Fried's legal team is seeking access to documents from law firm Fenwick & West to aid his defense against 13 charges, while attempting to dismiss up to ten charges before his scheduled October trial.
Reminiscent of its inception, law firm Fenwick & West formerly advised FTX, Alameda Research, and Sam Bankman-Fried (SBF), whose defense team now seeks access to these documents amidst SBF's criminal case involving 13 charges. Fenwick & West, however, states it requires permission from FTX's debtors before releasing these records, according to a memorandum issued in the Southern District Court of New York.
FTX's debtors and the government already possess these documents, and FTX has dismissed any attorney-client privilege in one instance, essentially making the debtors part of the 'prosecution team', according to the memorandum.
The sought-after documents comprise legal advice and information from the law firm, categorized into 11 essential areas for the defense. These encompass the establishment of FTX, FTX US, Alameda, North Dimension, and North Wireless Dimension, their relationships with Silvergate Bank, FTX’s data management practices, liquidity, margin lending, and registration as a money services business, along with numerous statements from the entities.
The memorandum references Federal Rules of Criminal Procedure Rules 16 and 17 and the U.S. Supreme Court's "Brady decision", all involving disclosure of relevant evidence.
SBF, the ex-CEO of FTX, aims to have up to ten charges against him dismissed before his October trial. His team requested the Southern District Court of New York on May 8 to drop all but three charges: conspiracy to commit commodities fraud, securities fraud, and money laundering.
Despite facing eight charges of fraud and money laundering after extradition from the Bahamas to the U.S., SBF’s lawyers claim the four charges added since February infringe upon the "specialty rule". According to this principle, the U.S. is obliged to prosecute SBF only for the crimes warranting his extradition.
The four recent charges include conspiracy to commit bank fraud and individual wire fraud charges relating to his actions at FTX and Alameda, with the latest charge of a supposed $40 million bribe to a Chinese government official added on March 28.
