In a recent ruling, a federal judge overseeing the case of Sam Bankman-Fried, the founder of FTX, stated that he cannot blame the collapse or operations of the company on its lawyers in his opening statements. Bankman-Fried’s defense team had intended to argue that FTX counsel were involved in certain decisions made by the company, but the judge ruled that without specifics, this argument may confuse or prejudice the jury. While the defense team is blocked from referring to external counsel in the opening statement, they may raise the issue later if they notify the judge and the Department of Justice, but without jurors present.
Bankman-Fried’s defense team had previously announced their plan to argue that in-house FTX attorneys and lawyers from the firm Fenwick & West were involved in various decisions, including the use of auto-deleting messaging services, the creation of North Dimension entities, banking relationships, loans, intercompany agreements, and FTX’s terms of service. However, the Department of Justice argued that the defense team had not provided sufficient detail on their argument and should be prevented from making it.
The judge’s ruling raises questions about the extent to which Bankman-Fried should be allowed to argue or present evidence regarding lawyer involvement. The judge emphasized that decisions on this matter will depend on the circumstances, but for now, the court will require sufficient notice to make appropriate rulings on a case-by-case basis. Bankman-Fried’s trial is scheduled to begin on October 3, starting with jury selection.