Despite having the campaign finance charges dropped in July, the prosecution has been granted permission by U.S. District Judge Lewis Kaplan to present evidence of FTX co-founder Sam Bankman-Fried political donations during his upcoming fraud trial. The United States Department of Justice prosecutors can show Bankman-Fried’s political contributions about his fraud charges.
As part of a series of rulings issued on September 26th, Judge Kaplan made a crucial decision in a 16-page pretrial order. The ruling clarified the admissible evidence for the upcoming fraud trial of the FTX founders, scheduled to commence on October 3rd.
Bankman-Fried initially faced federal charges, including violations of campaign finance laws and severe fraud and conspiracy charges. However, the charges were later dropped due to an extradition agreement between Bankman-Fried and the Bahamas.
“The defendant’s political contributions using FTX customer funds serve as direct evidence of the wire fraud scheme. Evidence is crucial in establishing the defendant’s motive and alleged fraudulent interest.”
Moreover, besides allowing a discussion on Bankman-Fried’s campaign donations, Kaplan supported the prosecution’s motion. Its motions aim to present evidence regarding Bankman-Fried’s alleged involvement in developing the FTX Token FTT tickers, which experienced a significant $1.25 decline. Moreover, the evidence intends to illustrate his purported instructions given to Alameda Research and its former CEO, Caroline Ellison, for manipulating the token’s price.
Key Rulings By Judge Kaplan Emerge In CEO Sam Bankman-Fried’s FTX Trial
Kaplan asserted that the alleged manipulation of cryptocurrency tokens, which supposedly resulted in a change in Alameda’s balance sheet, was deemed integral to the very act under investigation. Its action further strengthened the conspiracy being investigated.
when it came to the defendant’s alleged instruction given to Ms. Ellison for FTT price manipulation, Kaplan made a statement. He emphasized that this evidence reveals a “relationship of mutual trust” between them. Additionally, Kaplan highlighted that the probative value of this evidence outweighs any potential risk of unfair prejudice. Consequently, he deemed it admissible.
Kaplan approved numerous evidence submissions by the DOJ. He also permitted Bankman-Fried’s lawyers to inquire about government witnesses’ recreational drug use, as long as they provide prior notice to the court. However, the government witnesses encompass Caroline Ellison, former FTX engineer Nishad Singh, and FTX co-founder Gary Wang.
Related Reading| Crypto Exchanges Taiwan Unite for Industry Advancement
In addition, Kaplan denied the DoJ’s requests to restrict the defense from questioning witnesses about “privileged” matters. Additionally, the ruling mandated that Bankman-Fried abstains from discussing specific aspects of his pre-trial detention, family background, wealth, or age in front of the jury.
“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
Comments (No)