Memo written by Sam Bankman-Fried’s ex-girlfriend Caroline Ellison to type a part of case in opposition to FTX founder

Prosecutors within the case in opposition to Sam Bankman-Fried have supplied the clearest image but on the technique they plan to make use of to imprison the disgraced cryptocurrency mogul at his trial in October. 

In a 70-page courtroom submitting launched Monday, prosecutors mentioned they intend to make use of testimony from a few of Bankman-Fried’s former interior circle, together with ex-lover and Alameda Analysis CEO Caroline Ellison, 29.

Bankman-Fried, 31, saw his record $250 million bail revoked Friday after allegedly leaking Ellison’s love letters to the New York Times in an try, prosecutors say, to tamper along with her testimony. 

The state additionally mentioned it deliberate to make use of notes that Ellison took whereas working beneath him, together with a memo she wrote after one dialog with him titled ‘Issues Sam Is Freaking Out About.’ 

Alongside the blockbuster testimony from Ellison and a number of other different high FTX luitenants, the case in opposition to the 31-year-old former billionaire features a trove of economic information, political donations and personal Slack messages. 

Bankman-Fried faces over 100 years behind bars for a slew of costs associated to the collapse of his cryptocurrency trade FTX in November 2022, which got here after he allegedly used consumer funds for luxurious purchases and political donations. 

Sam Bankman-Fried faces testimony from a number of members of his former-inner-circle when he goes on trial in October

The 31-year-old faces slew of costs associated to the collapse of his cryptocurrency trade FTX in November 2022

Caroline Ellison, the ex-lover and enterprise companion of Bankman-Fried, is predicted to testify in opposition to him

Within the courtroom submitting set out Monday, prosecutors mentioned they plan to show members of Bankman-Fried’s cadre in opposition to him to show he was illegally and recklessly transferring billions of {dollars} on the top of his affect.

Among the many proof set to be launched is a recording of a gathering by which Ellison instructed her workers at Alameda Analysis – the hedge fund arm of FTX – that she labored with Bankman-Fried to funnel cash from buyer’s accounts. 

She is predicted to testify in opposition to him alongside different former top- FTX lieutenants, together with Gary Wang and Nishad Singh – all of whom have already pleaded responsible to the scheme and agreed to assist prosecutors. 

The aim of the submitting Monday was to argue the proof that has been gathered previously months must be admissible in courtroom.

The trove of paperwork is claimed to be among the many largest ever assembled for a white-collar prosecution, and it contains monetary information, spreadsheets, personal messages and Google paperwork.

Among the many personal messages was a stockpile of 750,000 pages of Slack messages from Wang’s laptop computer – which Bankman-Fried’s protection argued must be inadmissible in courtroom due it to being obtained and offered simply three days in the past. 

His protection submitted their very own submitting on Monday to hit out at prosecutors after it ‘repeatedly failed’ to satisfy deadlines for turning over proof that may be utilized in trial.

The 31-year-old’s attorneys argued the federal government must be barred from utilizing Wang’s Slack messages – or any proof produced by prosecutors after July 1. 

Additional supplies associated to Bankman-Fried’s resignation, which got here a month earlier than his arrest final December, had been additionally argued to be inadmissible. 

‘The protection doesn’t have limitless assets and should spend the restricted time left earlier than trial making ready its protection moderately than reviewing eleventh-hour productions,’ the protection’s submitting mentioned. 

Bankman-Fried noticed his report $250 million bail rescinded Friday after allegedly attempting to tamper with witness testimony. He’s pictured earlier than his bail listening to at Manhattan Federal Court docket on August 11, 2023

Two weeks in the past, prosecutors stunned Bankman-Fried’s attorneys by demanding his incarceration, saying he violated his bail order by giving The New York Times the private writings of Ellison. 

The decide in his case, Decide Lewis Kaplan, ordered him to await trial behind bars after discovering there was ‘possible trigger to imagine that the defendant has tried to tamper with witnesses at the least twice.’

The messages noticed Ellison element her life as the top of the hedge fund arm wracked with anxiousness and doubt, with one diary entry studying: ‘On the finish of the day I can’t wait to go dwelling and switch off my telephone and have a drink and get away from all of it.’

She is predicted to testify in opposition to Bankman-Fried when his blockbuster trial will get underway in October, the place she could also be joined by Singh and Wang.

Correspondence between the three of them is included within the spreadsheets prosecutors say they intend to current to a jury, which ‘saved monitor of illicit cash flows between Alameda and FTX,’ the submitting mentioned. 

Bankman-Fried hangs his head on this courtroom sketch after he’s handcuffed on August 11, 2023

Sam Bankman-Fried is escorted by courtroom officers to holding cells on this courtroom sketch

On the top of his powers, Bankman-Fried commanded billions of {dollars} and was seen as a frontrunner in a brand new era of financiers. He used this place to pour thousands and thousands into political donations, primarily to the Democratic Celebration.

However prosecutors mentioned they plan to make use of his political donations as proof of his alleged crimes, together with a message a former FTX government despatched to a member of the family in November 2021 about how the donations could be used to advertise cryptocurrencies in laws, studies the New York Times. 

The texts mentioned the aim of the donations was to ‘weed out anti crypto dems for professional crypto dems and anti crypto repubs for professional crypto repubs.’ The chief, Ryan Salame, noticed his dwelling raided in April as a part of an ongoing investigation, however he has not been charged with any crime. 

The names raised for giving potential testimony within the submitting included Ellison, Wang, Singh, and a former worker who ‘frequently consulted with the defendant about FTX’s fund-raising efforts.’