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The U.S. Department of Justice (DOJ) has levied allegations against Sam Bankman-Fried, the former CEO of FTX, for allegedly disclosing Caroline Ellison's private diary to the New York Times.
The accusation arises following the publication of an article by the NYT containing Ellison's personal reflections. Consequently, the DOJ is now pursuing a prohibition on all extrajudicial statements made by witnesses and other parties involved in the case.
“The defendant’s actions—sharing personal writings of Caroline Ellison’s with a New York Times reporter—implicate the core concern of Rule 23.1 that disseminating material related to the “testimony or credibility of prospective witnesses” presumptively involves a substantial likelihood or prejudice to a fair trial and the due administration of justice," the U.S. Attorneys wrote.
Rule 23.1(a) prohibits lawyers and their representatives from disclosing non-public information regarding a case if such disclosure is likely to impede a fair trial.
The attorneys contend that a restraining order on extrajudicial statements is imperative given the overwhelming media scrutiny surrounding this case and the defendant's deliberate efforts to manipulate media coverage in their favor.
Moreover, they assert that the defendant's actions could not only tarnish the jury pool but also amount to harassment of Ellison. Their apprehensions extend to the possibility of deterring other potential trial witnesses from testifying, as they may fear public humiliation and personal discrediting.
This appeal arises following FTX's temporary leadership initiating an independent legal action against Bankman-Fried, Ellison, and other executives. The lawsuit aims to reclaim funds and undo transactions, amounting to a combined value exceeding $1 billion.
The lawsuit includes several troubling allegations against Bankman-Fried and his associates. Among these allegations are accusations of Bankman-Fried diverting $10 million from FTX.US funds to his personal account, his brother Gabriel's purported plan to acquire the island nation of Nauru using foundation funds, and the alleged donation of over $100 million for political purposes, utilizing a combination of company and customer funds.
Amidst a major cash crisis at FTX, Ellison purportedly awarded herself an astonishing $22.5 million bonus, as alleged in the lawsuit.
