Prosecutors in the United States building a case against former FTX boss, Sam Bankman-fried (SBF), have reportedly gathered a trove of relevant evidence that includes code snippets, millions of pages of emails, and other digital records, the New York Times recently reported.
The trial, scheduled for October 2023, would test the effectiveness of their efforts, and could bring to book Bankman-fried who is charged with 13 criminal counts, including wire fraud.
The mountain of evidence
Evidence gathered include more than 6 million emails, and relevant snippets of code from various sources, such as phones, laptops, and Google accounts associated with Bankman-Fried, accumulated to 2.5 million pages.
This is the largest collection of evidence seen in any white-collar securities fraud cases, which would pose a challenge for SBF’s legal team.
The investigation and evidence collection show the importance of this case for the crypto and financial sectors.
SBF has been accused of misappropriating billions of dollars worth of customer funds while running FTX. He is also accused of defrauding investors and violating finance laws surrounding campaign activities, as he was the sixth largest donor to the democratic party.
Even so, the data trove of evidence is a considerable challenge for both the prosecution and the defense team. To effectively filter evidence, prosecutors need to sort through all data and prepare an airtight case utilizing the crucial details uncovered.
Beyond sorting data, the defense team has to analyze all evidence as they build a strong argument against the disgraced former CEO.
Caroline Ellison’s diary
Besides, another key piece of evidence for prosecutors is the availability of a personal diary belonging to Caroline Ellison, the former CEO of Alameda Research and SBF’s former girlfriend. Alameda Research was the trading wing closely linked with FTX.
Very few details have been shared about the diary and its content, only that it has a black cover, and it could possibly contain details on the “personal side” of her relationship with Bankman-Fried.
The details could possibly include her raw reflections on SBF, and her “personal and professional resentment” toward her former boss and romantic partner.
Caroline has already pleaded guilty to fraud charges and is cooperating with prosecutors in their case against SBF.
More evidence incriminating SBF could stream from Sullivan & Cromwell, the law firm overseeing FTX after its bankruptcy. The firm holds a significant amount of corporate records, including emails, Slack messages, and transaction logs.
For that reason, Bankman-Fried’s defense team has raised concerns about the prosecutors relying on the firm as an intermediary, potentially altering evidence or impeding the disclosure of favorable evidence.