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- 1 The court imposed a gag order on FTX ex-CEO Sam so he couldn’t affect the proceedings.
- 2 Lawyers representing him accepted the order but demanded it should be implicated on other witnesses as well.
- 3 SBF hasn’t pleaded guilty to any charges and is adamant about proving himself innocent.
The FTX scam involving its former CEO Sam Bankman-Fried has probably been the biggest fraud in the history of cryptocurrency. It is so complicated that the crypto world sees a new turn in the case in every hearing. The most recent one involves a gag order and possible implications on the case.
Gag Order and its Implications
For the uninitiated, a gag order is a judge’s decree that prevents an individual(s) to speak about a particular piece of information. In this ongoing case, the judge directed the same order on the former CEO of FTX. But Bankman-Fried’s lawyers have pleaded a counter-appeal. They want the gag order to be implemented on other potential witnesses too.
This includes the incumbent CEO, John Ray. Such an order was passed to ensure fair trials. The judge wanted to stop Bankman-Fried to make any comments that could impact the developments of the case.
Notably, he tried to discredit former business partner and witness Caroline Ellison in an interview. The act compelled the court to take the directive. The court initiated the order on July 20, 2023, and Bankman-Fried’s letter responded to it on July 22, 2023. In a letter sent to the US District Court Judge, Lewis A. Kaplan, the lawyer firm Cohen & Gresser LLP representing the former CEO stated their position.
The Argument of the Defendant
While the defendants denied any wrongdoings, they accepted the gag order. However, they put in an additional request demanding the same action for all the parties and witnesses involved in the case. If implemented, it would include former employees of FTX, the US government, FTX debtor entities, and many other potential witnesses.
Explaining the request, the lawyers said that a lot of people are building false propaganda against their clients. They openly accused the current CEO of being one of the biggest culprits and said that he has been making vilifying comments about Bankman-Fried in public.
Also, the law firm pointed out that the US government has shown its share of partisanship in this matter. According to it, the officials have promoted many articles that tarnished the reputation of Bankman-Fried. In the proceedings so far, SBF didn’t plead guilty to any allegation for which he was remanded. So, it would be interesting to see the direction in which this infamous case turns.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
