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Crypto Exchange FTX Founder Barred from Blaming Legal Counsel in Opening Trial Statement, Judge Rules

Crypto Exchange FTX Founder Barred from Blaming Legal Counsel in Opening Trial Statement, Judge Rules

Judge Lewis Kaplan issued an order stating that Bankman-Fried’s emphasis on implicating FTX’s lawyers in certain company decisions carries the potential to confuse or prejudice the jury. The judge expressed concerns about the risk of confusion and unfair prejudice to the government if the defendant were to focus on the presence or involvement of lawyers representing FTX and Alameda without providing specific details about their roles, tasks, knowledge, and the defendant’s awareness of their actions.

Bankman-Fried had previously indicated that his legal defense strategy would partially involve arguing that he received legal advice, including guidance on auto-delete policies and loans to FTX and Alameda, which led him to believe he was acting in good faith. His attorneys also mentioned plans to present evidence that lawyers from Fenwick & West LLP and in-house counsel were involved in reviewing and approving certain decisions.

In response, the Department of Justice requested that the defendant provide more comprehensive details regarding his defense strategy for trial or, alternatively, asked the court to restrict certain lines of questioning, evidence, and arguments that are not relevant to the case.

Jury selection for Bankman-Fried’s trial is set to commence on Tuesday and may extend into the remainder of the week.

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