The prosecutors are gearing up for Sam Bankman-Fried's October trial.
A forthcoming trial involving FTX's co-founder, Sam Bankman-Fried, is set to witness personal notes and diaries of Caroline Ellison, the former CEO of Alameda Research, as potential evidence.
Prosecutors, in their August 14th filing, have highlighted an intent to introduce several of Ellison's notes, one notably being the attention-grabbing “Things Sam is Freaking Out About.”
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is FUD in Crypto? (Fear, Uncertainty & Doubt Explained)
The note mentioned above focuses on multiple dialogues between Bankman-Fried and Ellison, touching on issues ranging from business apprehensions, Alameda's trading hedges, fundraising rounds, and critical media coverage focusing on the affiliations between the hedge fund and FTX.
Furthermore, other records from Ellison's personal collection shed light on the alleged deceptive practices at FTX. Among the evidence, there's a recorded interaction of Ellison from a November 9th, 2022, meeting just two days before a bankruptcy announcement from both FTX and Alameda.
During this discussion, Ellison was queried by a staff member regarding the knowledge of FTX's fund deficiency. To which she responded, "Yeah, I mean, I guess I talked about it with, like, Sam, Nishad, and Gary."
For context, Gary Wang, co-founding member of FTX, and Nishad Singh, who played a pivotal role as the crypto exchange’s director of engineering, have both admitted guilty to fraudulent activities. Currently, they are said to be collaborating with the prosecution.
When probed further about who decided on leveraging FTX user deposits, Ellison's alleged response was, “Um . . . Sam, I guess.”
The prosecution was quick to clarify that the extensive evidence from Ellison’s diaries and notes is not classified as hearsay. They argue that Ellison documented these details to both capture information and facilitate her alleged complicity in the plot.
Further evidence attempting to shed light on Bankman-Fried’s supposed illicit actions, such as misleading statements to a bank, purported bribery directed at Chinese officials, alleged manipulation of FTX's native token (FTT), and a biased approach to creditor payments, is also expected to be presented.
Sam Bankman-Fried, now housed in Brooklyn's Metropolitan Detention Centre after his bail was removed due to accusations of sharing excerpts of Ellison's diary with The New York Times, is gearing up for a consequential trial set for October. This case, rife with intrigues and potential bombshells from personal notes, is anticipated to grip the attention of the crypto world.
