The former CEO of FTX has signed a gag order that covers all witnesses in the company’s pending criminal case
Once worth an astounding $32 billion, cryptocurrency exchange FTX is now drowning in a sea of controversy and legal difficulties.
The exchange’s former CEO, Sam Bankman-Fried, or “SBF,” is at the centre of the controversy when the firm filed for bankruptcy in November, reportedly owing to fraud perpetrated by SBF.
The SBF legal team recently accepted a gag order and has been advocating for its expansion to encompass all trial participants and witnesses.
A gag order is a powerful tool that the court may use to keep the general public from discovering information about a case. In most cases, it is used to prevent public statements or disclosure of sensitive material by witnesses, defendants, attorneys, or other participants in the trial. The fundamental purpose of a gag order is to protect the integrity of the court system and ensure a fair trial by limiting the influence of biased media coverage.
SBF’s lawyer, Mark Cohen, admitted that his client had provided the New York Times with confidential information, including information on a former employee called Caroline Ellison who was collaborating with US authorities.
Cohen wrote in his note, “According to the court, Bankman-Fried did not break the protection order, his bail terms, or any other law or regulation controlling his behaviour.”
SBF and his legal team have shockingly consented to a gag order that prevents him from speaking publicly about the case. This precaution is meant to prevent statements that might influence public opinion or obstruct the administration of justice.
The SBF legal staff is not happy. Including FTX’s current CEO John Ray and US government officials, they have requested the court to apply the same regulations to everyone engaged.