East Bay Times

Bankman-Fried keeps talking, ignoring advice

FTX founder told to present plan to preserve texts

- By Ken Sweet

For federal prosecutor­s, Sam BankmanFri­ed could be the gift that keeps on giving.

After the November collapse of FTX, the cryptocurr­ency exchange he founded in 2019, Bankman-Fried unexpected­ly gave a series of interviews intended to present his version of events. He was indicted in December and charged with perpetrati­ng one of the biggest frauds in U.S. history — and he's still talking, either in person or on the internet.

A federal judge Thursday ordered lawyers for Sam

Bankman-Fried, the disgraced founder of the bankrupt FTX cryptocurr­ency exchange, to create a plan with prosecutor­s that would ensure that Bankman-Fried did not delete text messages

he sent while awaiting trial on charges that he orchestrat­ed the theft of billions of dollars in customer deposits.

The atypical chattiness for a criminal defendant is likely causing BankmanFri­ed's attorneys to scratch their heads, or worse. Prosecutor­s can use any statements, tweets or other communicat­ions against him at his trial, which is scheduled for October.

“Prosecutor­s love when defendants shoot their mouths off,” said Daniel R. Alonso, a former federal prosecutor who is now a white-collar criminal defense attorney. If BankmanFri­ed's public comments before trial can be proven false during the trial, it may undermine his credibilit­y with a jury, he said.

Bankman-Fried's most immediate concern, however, is a recent private communicat­ion. Prosecutor­s say he sent an encrypted message over the Signal texting app on Jan. 15 to the general

 ?? JOHN MINCHILLO — THE ASSOCIATED PRESS ?? Sam Bankman-Fried departs Manhattan federal court in New York on Thursday. The disgraced FTX founder has continued to speak in interviews and on social media platforms claiming he never tried to defraud investors.
JOHN MINCHILLO — THE ASSOCIATED PRESS Sam Bankman-Fried departs Manhattan federal court in New York on Thursday. The disgraced FTX founder has continued to speak in interviews and on social media platforms claiming he never tried to defraud investors.
 ?? MARTA LAVANDIER – THE ASSOCIATED PRESS ARCHIVES ?? Before its collapse, FTX was the world's second-largest crypto exchange and Bankman-Fried, 30, was its CEO and a billionair­e several times over.
MARTA LAVANDIER – THE ASSOCIATED PRESS ARCHIVES Before its collapse, FTX was the world's second-largest crypto exchange and Bankman-Fried, 30, was its CEO and a billionair­e several times over.

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