FTX Founder, Sam Bankman-Fried, who is facing fraud charges, has agreed to a gag order preventing him from making comments that could interfere with his trial.
In a letter dated July 22 to New York-based United States District Court Judge Lewis A. Kaplan, Bankman-Fried’s lawyers, Cohen & Gresser LLP, denied the accusations but accepted the gag order.
However, they also argued that the same gag order should apply to all parties and witnesses involved in the case, including the U.S. government, former FTX employees, FTX Debtor entities, Alameda Research, and even the current CEO of FTX, John Ray.
The lawyers explained that their client has faced a “toxic media environment” since the collapse of the exchange, and they pointed out that John Ray had been particularly critical of Bankman-Fried in public comments and filings during the FTX bankruptcy proceedings.
They accused Ray of making repeated personal attacks on Bankman-Fried that seemed more aimed at vilifying him rather than focusing on recovering assets for FTX creditors. In response to these attacks, Bankman-Fried felt compelled to defend himself.
The lawyers further argued that the U.S. government was using a double standard by allowing articles that harmed Bankman-Fried’s reputation while requesting a gag order against him.
Sam Bankman-Fried has pleaded not guilty to the fraud charges, and the trial is set to begin on October 3rd.
Also Read: FTX Files $1B Lawsuit Against SBF & Ex-Executives
The gag order is a legal measure to restrict the dissemination of information or comments that could influence the jury pool and ensure a fair trial. It will now prevent Bankman-Fried from publicly discrediting government witnesses or sharing confidential information related to the case.
