In the ongoing criminal case involving Sam Bankman-Fried (SBF), his legal team is preparing to gather evidence that supports his alleged conduct based on previous lawyers' advice regarding his role at FTX and Alameda Research. This proposal is centered around the notion of acting in "good faith."
A filing submitted to the US District Court for the Southern District of New York on August 23 reveals that SBF's attorneys intend to demonstrate that Fenwick & West, a law firm that once represented cryptocurrency exchange FTX, provided legal advice that influenced Bankman-Fried's actions. Fenwick is said to have advised FTX on various matters such as data retention policy, client agreements, terms of service, and agreements with Alameda.
The filing states, "The defense intends to present evidence that Mr. Bankman-Fried knew that FTX's attorneys, as well as FTX's in-house counsel, were involved in reviewing and approving decisions related to these issues and other issues, which convinced him he was acting in good faith." This evidence, the defense argues, is relevant to the question of intent and extends beyond situations where formal legal advice was sought and followed.
This defense strategy appears to provide a legal defense for SBF's alleged actions that led to his criminal charges, including the alleged deletion of certain communications between FTX and Alameda employees. Although an earlier motion to subpoena documents related to this strategy from Fenwick was denied in June , the defense continues to seek ways to bolster its case.
SBF's case involves allegations of misappropriation of user funds for investments, personal expenses, and political campaign contributions during his tenure as the CEO of FTX. He is facing 12 criminal charges across two trials set to begin in October 2023 and March 2024, and he has pleaded not guilty to all charges.
SBF was initially released on a $250 million bail after extradition from the Bahamas in December 2022. However, on August 11, a federal judge revoked his bail due to allegations of witness intimidation, resulting in his detention at the Metropolitan Detention Center.
Additionally, an August 22 hearing revealed that SBF has been surviving on a diet of bread, peanut butter, and water in prison due to the lack of vegetarian meal options. This information adds to the complexities of his case and legal proceedings.
