SBF’s lawyers cleared to ask FTX employees about drug use in court – Cryptopolitan

The legal drama surrounding Sam Bankman-Fried (SBF), the founder of FTX, has taken several notable turns as the trial date approaches. Under the jurisdiction of Judge Lewis Kaplan for almost a year now, this case has garnered attention for various reasons. Judge Kaplan has made significant pretrial decisions that could sway the proceedings. These rulings are pivotal in shaping the course of the trial and its potential impact on the cryptocurrency industry and financial regulations.

SBF’s legal team cleared to cross-examine FTX witnesses

One of the key rulings is related to cross-examination. The defense team representing SBF has been granted the authority to cross-examine cooperating witnesses, particularly former FTX insiders. They can explore subjects such as privileged company information and the recreational drug use of these witnesses. However, a noteworthy condition applies: the defense attorneys must notify the court in advance when they intend to delve into these topics.

Another significant development is the admission of evidence tied to FTX’s bankruptcy. Despite the defense’s objections, Judge Kaplan has allowed the prosecution to present evidence related to FTX’s financial troubles during the trial. This means that the jury will likely be exposed to information about FTX’s financial situation, which could be a critical element in the case. Additionally, the trial is poised to investigate the alleged manipulation of the FTT token. The focus here is on whether this cryptocurrency was influenced or controlled by individuals within FTX.

This aspect of the case could potentially reveal the inner workings of FTX and its cryptocurrency operations. A noteworthy subplot in this legal saga is SBF’s ongoing attempts to secure his release from jail ahead of the trial. SBF has been behind bars since August after Judge Kaplan ruled that he might have attempted to tamper with witnesses. Despite previous rejections of his release requests and an appellate court’s refusal to alter the ruling, Bankman-Fried’s legal team has initiated a fresh approach.

The pretrial ruling clears the way for an interesting legal battle

SBF’s team is now seeking permission for him to reside temporarily in New York City, under the watchful eye of a security guard. The rationale behind this request is to enable him to prepare more effectively for the trial. The security guard would closely monitor SBF’s activities, ensuring that he has no visitors and no access to electronic devices, including computers, cell phones, and the internet.

The proposal comes with a strict gag order, limiting Bankman-Fried’s communication with his legal team and family. Another aspect that has drawn attention is the request for Bankman-Fried to be allowed to wear a suit during the trial. In previous court appearances before Judge Kaplan, he was dressed in a prison uniform and wore shackles. This request appears to be an effort to present a different image to the jury. The timeline for the trial is also of significance. It is set to kick off with jury selection (voir dire) on October 3 at 9:30 a.m. EDT.

The Department of Justice (DOJ) anticipates that this process may take a significant part of the day, while white-collar attorneys speculate that it could extend further. Once a jury is seated, opening statements are expected to follow. Moreover, the DOJ plans to call witnesses to testify as early as the following week. The court docket suggests that some of these witnesses may have close ties to FTX, including individuals like Gary Wang, Caroline Ellison, and Nishad Singh. A brief pause in the proceedings is anticipated on October 9 due to a holiday, with the trial resuming on October 10.

These pretrial rulings by Judge Kaplan lay the groundwork for what is poised to be a closely watched legal battle. The outcome of this case holds significance not only for Sam Bankman-Fried personally but also for the wider cryptocurrency industry and financial regulations. As the trial date approaches, how these rulings shape the narrative and arguments presented in the courtroom will be closely monitored. The coming weeks are sure to provide further insights into this intriguing legal saga.