Details have emerged of FTX founder Sam Bankman-Fried’s defense strategy in the face of what appears to be overwhelming evidence of wrongdoing at his collapsed crypto exchange.
A letter from his defense lawyers released Wednesday US time said that Bankman-Fried was following the advice of his corporate lawyers prior to the collapse of FTX.
“Evidence of the defendant’s reliance on counsel [lawyers] is relevant to the question of intent,” read the letter.
The letter implies Bankman-Fried will be claiming he was acting in good faith in following the advice he was given at the time.
Bankman-Fried stands accused of “wire fraud”, a federal crime, among other misdeeds. Wire fraud is an antiquated term meaning the alleged fraud was carried out using some form of telecommunications equipment, and carries a hefty maximum penalty of 20 years in jail.
Bankman-Fried is also facing charges of commodities fraud and breaking laws on political donations.
The situation does not look good for the 31-year-old MIT graduate. He was released on bail, but broke the conditions of that bail so many times it was revoked. He is currently being held in the Metropolitan Detention Center in Brooklyn, New York.
In addition to breaking bail conditions – for, among other things, leaking his former colleague and girlfriend Caroline Ellison’s diary to media – Bankman-Fried has further aggravated public opinion by complaining about jail conditions while on remand. The complaints include the lack of vegan dining options and demands for depression and ADHD medication.
Bankman-Fried’s trial will be heard before a jury, and is scheduled to begin in October.
Note: The picture at the top of this story was selected from a range of AI-generated images of Bankman-Fried. All the other ones were potentially prejudicial of his upcoming trial.
Enjoy our reporting? Sign up for the Pharos newsletter and receive an update every week for free.
