Bankman-Fried seeks documents from former FTX law firm in crypto fraud case

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May 31 (Reuters) – Sam Bankman-Fried is seeking documents from a law firm that advised his former cryptocurrency exchange FTX, saying in a court filing they could help him defeat charges of fraud.

The former crypto mogul said the documents could prove he relied on legal advice from Silicon Valley law firm Fenwick & West and did not believe he was breaking the law. Manhattan federal prosecutors must prove he knew his conduct was illegal.

Fenwick did not immediately respond to a request for comment Wednesday.

Bankman-Fried, the now-defunct 31-year-old founder of FTX Trading, pleaded not guilty in Manhattan federal court to 13 counts of fraud, conspiracy, illegal campaign contributions and foreign bribery.

On Tuesday, he asked a judge to order prosecutors to turn over documents related to Fenwicks’ legal advice on issues central to the government’s case, including FTX’s use of disappearing courier services and failure to properly register with regulators.

Bankman-Fried said in the filing that each of the charges against him requires the government to prove he acted voluntarily and that legal advice from Fenwick could prove he is innocent because he believed his actions were honest. .

Bankman-Fried enjoyed a digital currency boom to reach a net worth of $26 billion and became an influential political and philanthropic donor before FTX filed for Chapter 11 protection in November.

Prosecutors allege Bankman-Fried stole billions of dollars in client funds to make up for losses at his hedge fund Alameda Research, which collapsed with FTX last year after his risky cryptocurrency bets failed. cash.

On May 8, Bankman-Fried urged U.S. District Judge Lewis Kaplan to dismiss most charges, arguing that prosecutors rushed to trial after the stunning collapse of FTX, which was once seen as a bulwark of the volatile crypto industry.

Prosecutors on Monday opposed the request, calling Bankman-Frieds’ allegations unsubstantiated and arguing that his alleged crimes went to the heart of the laws he is accused of violating.

Bankman-Fried has remained largely under house arrest at his parents’ home in Palo Alto, Calif., on $250 million bail since his extradition from the Bahamas in December. His trial is scheduled for October 2.

Reporting by Jack Queen

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