FTX Customers, Investors Will Testify Against Sam Bankman-Fried, DOJ Says

2 months ago

Federal prosecutors privation to telephone erstwhile FTX customers, investors and employees successful its upcoming proceedings against onetime crypto enforcement Sam Bankman-Fried, the Department of Justice confirmed successful a brace of Saturday filings.

The customers and investors who owned FTX shares tin talk to their expectations of however FTX would clasp their funds, portion the cooperating witnesses tin talk to "their interactions with the suspect and their knowing of the intent of definite statements and actions of the defendant," a missive signed by Assistant U.S. Attorney Thane Rehn said.

"In each of these cases, the anticipated grounds astir however the witnesses understood their narration with the suspect and his companies, and their mentation of statements made by the suspect and his agents, is straight applicable to the issues successful quality astatine trial, and is probative of however tenable persons would person interpreted and understood representations made by the suspect regarding FTX’s attraction of lawsuit assets and different issues," the missive said.

The DOJ intends to telephone retail customers who "transferred tens of thousands of dollars worthy of assets" and organization clients who moved "tens of millions of dollars worthy of assets" to FTX, with the anticipation that the speech would custody these funds, the missive said.

The missive did not place immoderate of the prospective witnesses oregon accidental however galore the DOJ intends to call. A 2nd missive said the lawsuit witnesses are apt to attest for little than 30 minutes each "and volition impact minimal, if any, exhibits." The DOJ identified erstwhile FTX Chief Technology Officer Gary Wang, erstwhile FTX Head of Engineering Nishad Singh and erstwhile Alameda Research CEO Caroline Ellison arsenic 3 cooperating witnesses who each pled blameworthy to charges tied to the speech and volition testify. Another erstwhile FTX executive, Ryan Salame, pleaded blameworthy to charges but hadn't agreed to attest arsenic of a fewer weeks ago. The DOJ is besides readying to telephone guardant astatine slightest different 2 witnesses to attest nether a assistance of immunity, but has not publically identified them yet.

One of the lawsuit witnesses, which the DOJ identified arsenic "FTX Customer-1," lives successful Ukraine and cannot easy question to the U.S. for some ineligible and logistical reasons, the 2nd missive said. Because of the warfare successful Ukraine, the lawsuit needs support from the authorities to permission the country. Should that support beryllium granted, the logistics of getting the lawsuit to the U.S. would "take astatine slightest astir 3 days" (and different 3 days back) and necessitate aggregate forms of travel.

The DOJ is asking the justice to o.k. grounds via video conference, supervised by a U.S. authorities authoritative perchance astatine the embassy, alternatively of requiring in-person testimony. The defence does not hold to the motion, the DOJ said.

"To get apt little than 30 minutes of grounds from overseas FTX lawsuit witnesses, however, requires, for astatine slightest immoderate countries, coordinating with section authorities, arranging multi-day question itineraries to accommodate varying clip changes and question delays, and incurring important costs associated with specified arrangements. Notwithstanding those hurdles, the Government is successful the process of arranging for immoderate overseas FTX customers to question to New York to testify," the missive said.

Inner City Press archetypal reported connected the missive astir a Ukrainian witness.

Bankman-Fried's proceedings starts adjacent week, with voir dire – the jury enactment process – kicking disconnected connected Oct. 3. Opening statements whitethorn past statesman as soon arsenic Oct. 4.

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