Lawyers for SBF urge limits on out-of-court statements by witnesses

Lawyers for the former head of FTX Sam Bankman-Fried (SBF) urged the court to limit public comments about the proceedings of all witnesses, including the platform’s current CEO John Ray.

The lawyers agreed to comply with the nondisclosure order, but rejected the U.S. Department of Justice’s accusations that the client provided media materials from Caroline Ellison’s diary. The department pointed to an attempt to discredit the former CEO of Alameda Research, which could prejudice a fair trial.

According to the document, SBF will no longer be able to make comments that could smear a government witness by disclosing confidential information.

“We ask that any such restriction apply not only to Bankman-Fried, but equally to all sides and witnesses in this case,” — the motion states.

According to the lawyers, the list includes the U.S. government, former FTX employees, the exchange’s debtor entities, Alameda Research, and other potential participants in the case.

The lawyers pointed to a “toxic media atmosphere” that has arisen not without the influence of the platform’s new CEO.

“Ray’s repeated attacks on Bankman-Fried, which have little to do with his role in returning assets to creditors, appear to be more aimed at publicly smearing the latter. This left SBF with no choice but to respond,” — the lawyers explained.

Experts also pointed to the U.S. government’s double standards in citing several articles that were aimed at harming Bankman-Fried’s reputation.

The U.S. prosecutors indicted SBF on 13 criminal counts. He has pleaded not guilty to all counts. Hearings are scheduled for October 3.

Ellison and the exchange’s chief technology officer Gary Wang pleaded guilty to charges related to the platform’s collapse and agreed to cooperate with the investigation. The former head of Alameda Research described manipulating the price of the platform’s utility token FTT.

Ellison also admitted to deceiving creditors. She said she knew it was wrong. The former head of Alameda, along with the former FTX CEO, hid agreements from investors and falsified financial statements.