His attorney Mark Cohen, in a statement, said, “Mr. Bankman-Fried is reviewing the charges with his legal team and considering all of his legal options.”
Howard Fischer, a former Securities and Exchange Commission lawyer, told CNBC, “Given the speed of the government complaints and the indictment, it seems likely that former FTX employees (most likely those in senior positions) were cooperating with the authorities, most likely in exchange for leniency.”
“With a large case like this, there is often a rush to be the first one in the prosecutor’s door, because the value of cooperation diminishes rapidly if all you can offer is a duplicate of what the authorities already have,” said Fischer, a partner with the law firm Moses Singer.
Fischer, referring to former Alameda CEO Caroline Ellison, said, “While it is not known yet if that is the case, or who might be cooperating at this point, I would not be surprised if Ms. Ellison was one of the first person’s seeking to help the prosecution.”
He noted that Ellison’s own lawyer is the former co-head of SEC’s Division of Enforcement, and she knows how the system works and how to work it to her client’s advantage.”
Ellison’s attorney was not immediately available to comment.
Bankman-Fried’s arrest took the public and lawmakers by surprise. The accelerated timeline suggests prosecutors have a high level of confidence in securing a conviction, a legal expert told CNBC.