: What legal strategy? Sam Bankman-Fried’s FTX comments will cause headaches, experts say

by | Nov 29, 2022 | Stock Market

A strategy of being always online and courting the media helped Sam Bankman-Fried build FTX into a crypto juggernaut, but it’s not helping him as he faces a plethora of legal entanglements surrounding his company’s multibillion-dollar collapse, experts said. Most company founders and executives in a similar situation would stay silent, but not Bankman-Fried, who has continued to be highly engaged — regularly posting on Twitter, giving unvarnished comments to reporters and even agreeing to appear virtually at the New York Times Dealbook conference on Wednesday.

It’s a curious approach — and one that legal experts say could cause him and his lawyers multiple headaches in any upcoming litigation. Criminal lawyers in particular prefer that their clients stay quiet in public. “Any attorney worth his salt should be telling him to keep his mouth shut,” said Mark Broughton, a California criminal defense attorney who has written extensively on effective media management for lawyers. “There is a logic in getting out in front of the narrative and trying to define it, but this is something that should be left to one’s attorney, because anything you say can be used to impeach you.”  Since FTX filed for Chapter 11 bankruptcy protection earlier this month, federal prosecutors and regulators in the U.S. have been investigating allegations that Bankman-Fried misused customer deposits and that billions of dollars have gone missing. He also faces civil litigation from the millions of customers whose accounts have been frozen.  OPINION: …

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