Bankman-Fried’s lawyers say October trial may need to be delayed

By Luc Cohen

NEW YORK (Reuters) – Sam Bankman-Fried’s lawyers said on Wednesday it may be necessary to delay the FTX cryptocurrency exchange founder’s scheduled Oct. 2 criminal trial, arguing it may take more time than expected to review the evidence and prepare a defense.

According to the lawyers for former billionaire Caroline Ellison, 31, wrote to U.S. district Judge Lewis Kaplan that evidence had not been turned over by federal prosecutors in Manhattan from devices belonging to Gary Wang and Caroline Ellison, who were once close friends of their client.

Beide have pleaded guilty, and they both agreed to cooperate fully with the prosecution. 

Lawyers also pointed out that new conspiracy and fraud charges were added by prosecutors late last month. This was in response to the November collapsed of Bankman-Fried’s then-bankrupt exchange. His arrest later the following month.

Bankman-Fried, who cheated investors, caused losses of billions of dollars and was charged with eight other counts, pleaded not guilty in January. “epic” fraud.

“While we are not making such an application at this time, we wanted to note this issue for the Court now,” Christian Everdell was one of Bankman Fried’s attorneys and he wrote the letter.

An American Attorney’s Office in Manhattan spokesperson declined to comment. 

Bankman Fried rode the boom in bitcoin’s value to $26 billion and was an important donor to U.S. politics.

However, his fortune was ruined by concerns over commingling funds between FTX, Alameda Research (a hedge fund he owned) and FTX. This led to the cryptocurrency equivalent of a bank run at FTX. 

Bankman-Fried was freed on $250million bond. He is currently under house arrest in Palo Alto (California)

Kaplan suggested that his bail might be lifted after the prosecutors claimed he could have attempted to interfere with witnesses. Bankman Fried was recommended by prosecutors to remain at liberty with no restrictions on technology use. 

A court hearing will be held on Friday to discuss the trial schedule and Bankman Fried’s bail conditions.

(Reporting from Luc Cohen in New York, Editing by Lincoln Feast.