Judge Blocks Bankman-Fried’s Fraud Prosecution Attempt
• Judge Lewis Kaplan blocks Bankman-Fried’s attempt to obtain key documents from Fenwick & West LLP as part of his fraud prosecution defense.
• Bankman-Fried had hoped to use the documents to support his claim that he relied on legal advice while engaging in activities for which he is currently facing prosecution.
• FTX recently initiated a lawsuit aiming to recover more than $700 million from investment firms linked to the company.
Judge Blocks Bankman-Fried’s Attempt To Obtain Key Documents
U.S. District Judge Lewis Kaplan has blocked Sam Bankman-Fried, co-founder of FTX, from obtaining documents from a Silicon Valley law firm, Fenwick & West LLP, as part of his defense strategy in his ongoing federal fraud case. His request was denied by Judge Kaplan who characterized it as a “fishing expedition” lacking justification.
Bankman-Fried’s Defense Strategy
In preparation for his defense, Bankman-Fried’s legal team planned to argue that he had relied on the advice provided by the law firm Fenwick & West which covered topics such as encrypted messaging apps, multimillion-dollar loans and compliance with US banking regulations.
FTX Initiates Lawsuit Against Investment Firms
On June 22, FTX initiated a lawsuit in the U.S. Bankruptcy Court for the District of Delaware aiming to recover more than $700 million from investment firms linked to the company including K5 Global, Mount Olympus Capital and SGN Albany Capital and their affiliated entities and K5 co-owners Michael Kives and Bryan Baum. The funds were allegedly used for high risk investments, personal expenses and political donations.
Charges Against Bankman-Fried
Bankman-Fried is currently facing two criminal trials wherein he has been accused of orchestrating a complex fraud scheme involving misappropriation of billions of dollars in FTX customer funds without their knowledge or consent .
SEC Demands Answers From Sam Bankman-Fried
The United States Securities and Exchange Commission (SEC) has recently demanded answers from Sam Bankman Fried concerning this case but no further details have been released yet regarding any additional charges against him .