FTX cryptocurrency exchange founder Sam Bankman-Fried, who is currently under indictment, is seeking to avoid jail time for allegedly disclosing sensitive information to the press. To aid in his defense, Bankman-Fried has enlisted the help of Laurence Tribe, a prominent American constitutional law expert.
In a court filing on Tuesday night, Tribe argued that Bankman-Fried’s disclosures to the New York Times about a former colleague did not meet the threshold of “clear and convincing evidence” required to prove witness tampering. The founder of FTX is facing potential bail revocation after providing the Times with personal writings from Caroline Ellison, the former CEO of Alameda Research, an affiliated hedge fund.
Bankman-Fried has pleaded not guilty to charges of embezzling billions of dollars from FTX customer funds to cover losses at Alameda. Ellison is expected to testify against him in an upcoming trial scheduled for October 2.
Tribe asserted that Bankman-Fried has the right to shape his public image through the press, as long as he does not obstruct justice. He argued that Bankman-Fried’s engagement with the Times article about Ellison only served as a “supplemental source” and did not constitute witness tampering.
Tribe also criticized the one-sided nature of the gag order issued on July 26, which prohibited Bankman-Fried from attempting to influence public opinion about the case. He argued that the order allowed his detractors to freely contribute to the media frenzy surrounding the trial.
Bankman-Fried has been largely confined to his parents’ home on a $250 million bond since his arrest in December 2022.
Tribe’s filing was accompanied by a letter from Bankman-Fried’s lawyers, asserting that their client did not intend to intimidate witnesses and should not be incarcerated.
Prosecutors have until Thursday to respond to the letter, and it remains unclear when Judge Lewis Kaplan will make a ruling.
Laurence Tribe, now 81 and an emeritus professor, works at a law firm that represents Bankman-Fried’s father, Joseph Bankman. However, Tribe stated that he had no involvement in that particular relationship and submitted the filing independently as a constitutional law expert.
Tribe is well-known for his work, having published the influential treatise “American Constitutional Law” in 1978 and served as lead counsel in 37 Supreme Court cases. He gained further recognition in 1987 for his testimony against Robert Bork’s unsuccessful nomination to the Supreme Court during U.S. Senate hearings.
The case against Bankman-Fried is titled U.S. v. Bankman-Fried and is being heard in the U.S. District Court for the Southern District of New York, with the case number 22-cr-00673.
Reporting by Jonathan Stempel in New York; Additional reporting by Luc Cohen; Editing by Daniel Wallis
What is the legal standard for witness tampering and did Bankman-Fried’s actions meet this standard?
Is contending that Bankman-Fried’s actions do not constitute witness tampering as they did not meet the legal standard of “clear and convincing evidence.” In his court filing, Tribe argued that Bankman-Fried’s disclosure of personal writings to the New York Times about Ellison did not rise to the level of tampering with a witness.
Bankman-Fried, who founded the FTX cryptocurrency exchange, is seeking to avoid jail time and potential bail revocation as he faces charges of embezzlement. He is accused of using customer funds from FTX to cover losses at another company, Alameda Research, where Ellison formerly served as CEO. Ellison is expected to testify against Bankman-Fried in his upcoming trial.
Tribe, a renowned constitutional law expert, has been enlisted by Bankman-Fried to strengthen his defense. Tribe’s argument is aimed at establishing that Bankman-Fried’s actions did not meet the legal criteria for witness tampering. The court will ultimately decide whether these arguments hold merit and influence the outcome of Bankman-Fried’s case.
“Sam Bankman-Fried’s decision to bring in a top constitutional law expert showcases the seriousness with which he is approaching his legal defense. It will be interesting to see how this expert navigates the legal complexities involved and if it will help Mr. Bankman-Fried avoid potential jail time.”