- The co-founder is suspected of conspiracy to steal billions of dollars from FTX customers.
- SBF wanted to utilize this evidence to prove that he had sought and followed legal counsel.
FTX co-founder Sam Bankman-Fried (SBF) was turned down in his attempt to collect papers from Silicon Valley legal firm Fenwick & West LLP as part of his defense strategy in his continuing federal fraud prosecution. Bankman-Fried wanted to utilize this evidence to prove that he had sought and followed legal counsel. Before participating in the criminal behavior for which he is now being prosecuted.
Recently, SBF’s legal team petitioned the presiding court. Asking for permission to subpoena the prosecution for the papers they got from Fenwick & West. U.S. District Judge Lewis Kaplan, however, deemed the motion to be frivolous. Calling it a “fishing expedition” that would not be legal.
Common Tactic to Refute Allegations
Bankman-Fried’s defense team intended to use an argument that their client had reasonably relied on the counsel of Fenwick & West. According to Bloomberg, this tactic is often used by criminal defendants to refute the prosecution’s allegations of a willful violation.
Moreover, Bankman-Fried’s attorneys have contended that the charges against their client center on their use of encrypted messaging apps, multimillion-dollar loans to FTX executives, and failure to comply with United States banking regulations.
SBF, who is now undergoing two separate criminal trials, is suspected of masterminding a conspiracy to steal billions of dollars from FTX customers. Allegedly, the money went into things like political contributions, high-risk investments, and lavish lifestyles.
There were four significant media houses that argued against keeping FTX customers’ identities secret. Reuters reported on June 23 that the media outlets were appealing Judge Dorsey’s order to keep the identities of FTX clients under wraps.
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