Former FTX CEO exposes prosecutors’ failure to produce key evidence in fraud trial

TL;DR Breakdown

  • SBF has alleged that prosecutors have failed to meet discovery deadlines for crucial evidence needed in his defense against multiple fraud charges.
  • In a letter from Bankman-Fried’s attorneys, the lawyers expressed concerns about the delayed production of significant discovery, given that the trial is less than four months away.
  • FTX bankers, tasked with rescuing the struggling company, are reportedly exploring the possibility of selling shares in an artificial intelligence (AI) startup as part of the currently booming AI sector.

Former FTX CEO, Sam Bankman-Fried, has alleged that prosecutors have failed to meet discovery deadlines for crucial evidence needed in his defense against multiple fraud charges. Bankman-Fried’s lawyers informed United States District Judge Lewis A. Kaplan that the government had not provided the contents of five electronic devices, which were due for discovery by the end of March. Among the devices were a laptop and iPhone belonging to former Alameda Research CEO Caroline Ellison, as well as a laptop belonging to FTX co-founder Gary Wang.

In a letter from Bankman-Fried’s attorneys, they expressed concerns about the delayed production of significant discovery, given that the trial is less than four months away. Bankman-Fried is scheduled to appear in court on October 2, facing fraud charges, allegations of illegal political donations, and bribery involving the Chinese government. The defense does not wish to adjourn the trial date but mentioned the possibility of filing additional motions if the newly produced discovery gives rise to such grounds.

FTX seeks sale of AI stock

The letter also highlighted the government’s failure to provide information related to FTX debtors. The late production of these materials is said to have a cumulative effect on the defense’s ability to adequately prepare for trial. 

“As the trial date is now less than four months away, the defense is concerned that the late production of such voluminous and important discovery will impact the preparation of the defense.”

The missing discovery comprises a substantial amount, totaling over 3.6 million documents and exceeding 10 million pages. The defense received the last production on May 25, consisting of just under 2.5 million documents, which more than tripled the volume of existing discovery.

Meanwhile, FTX bankers, tasked with rescuing the struggling company, are reportedly exploring the possibility of selling shares in an artificial intelligence (AI) startup as part of the currently booming AI sector. Perella Weinberg, the investment banking firm retained by the bankrupt exchange, has allegedly been enticing potential investors with the sale of hundreds of millions of dollars worth of shares in AI startup Anthropic. 

During FTX’s bankruptcy in November 2022, the company held $500 million worth of Anthropic stock, which is estimated to be worth significantly more now, considering the AI boom. Anthropic recently raised $450 million in its Series C funding round on May 23, with a reported valuation of $4.6 billion

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