In a comprehensive 70-page court filing, prosecutors in the criminal case of Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, revealed their detailed plan of evidence and witnesses for the upcoming trial in October. The prosecutors intend to rely on testimonies from Mr. Bankman-Fried’s close advisors, an expert witness, and employees from FTX and Alameda Research, another venture founded by him. They also plan to submit Caroline Ellison’s notes, including a memorandum titled “Things Sam Is Freaking Out About,” and a recorded meeting where Ms. Ellison admits to collaborating with Mr. Bankman-Fried in embezzling funds from FTX customers’ accounts.
Mr. Bankman-Fried, once a prominent figure in the crypto industry and the mastermind behind FTX’s growth, was arrested and charged with orchestrating a large-scale scheme involving the misappropriation of customer deposits for personal use, real estate purchases, charitable donations, and political contributions. Ms. Ellison, along with two other top FTX executives, Gary Wang and Nishad Singh, has already pleaded guilty and agreed to cooperate with the prosecutors.
Facing a total of seven charges, including wire fraud, securities fraud, commodities fraud, and money laundering, Mr. Bankman-Fried has maintained his innocence and is scheduled for trial on October 2nd. However, his bail was recently revoked due to allegations of witness intimidation, leading to his imprisonment.
The prosecutors’ filing on Monday argued for the admission of the extensive evidence they collected, which includes financial records, spreadsheets, Google documents, and private communications. In response, Mr. Bankman-Fried’s legal team submitted their own memo, claiming that the prosecution repeatedly failed to meet evidence disclosure deadlines. They highlighted a recent production of nearly 750,000 pages of Slack messages from Mr. Wang’s laptop, stating that evidence presented after July 1st should be excluded from the trial. They also requested the exclusion of material related to Mr. Bankman-Fried’s resignation from FTX.
Over the course of their investigation, the prosecutors have amassed an unprecedented volume of evidence, making it one of the largest collections in a white-collar securities fraud case conducted by federal authorities in Manhattan. The government’s filing reveals key details about the evidence and witnesses they plan to present at the trial. They will reference spreadsheets maintained by Ms. Ellison, Mr. Singh, and Mr. Wang, which tracked illicit money movements between Alameda and FTX. The prosecutors also intend to discuss FTX advertisements that appeared on TV.
Furthermore, the prosecutors will use Mr. Bankman-Fried’s political contributions as evidence of his fraudulent actions. They mentioned a text message sent by high-ranking FTX executive Ryan Salame to a family member in November 2021, outlining Mr. Bankman-Fried’s plans to leverage political donations to promote cryptocurrencies in Washington. According to the message, the goal was to support pro-crypto politicians while eliminating opponents. However, Mr. Salame, who has been under investigation but not charged with any crimes, is considered “unavailable as a witness” due to invoking his Fifth Amendment right against self-incrimination.
While Mr. Salame’s lawyer has not responded to requests for comment, Ms. Ellison, Mr. Singh, and Mr. Wang are expected to testify as witnesses. The prosecutors also plan to call upon other former employees from FTX and Alameda, particularly someone who regularly consulted with Mr. Bankman-Fried on fundraising efforts. Notably, Ms. Ellison’s testimony holds significant weight in the prosecution’s case, given her role at Alameda and her past romantic involvement with Mr. Bankman-Fried. A transcript from a meeting she held with Alameda employees in November 2022 reveals that when asked who made the decision to utilize customer funds, she replied, “Um… Sam, I guess.”
It is important to note that Matthew Goldstein contributed to this report.
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