Sam Bankman-Fried’s lawyers argue previous FTX legal team led him to act 'in good religion'


Lawyers at the moment representing Sam Bankman-Fried, or SBF, for his legal case within the United States plan to elicit proof the previous CEO acted “in good faith” on recommendation of previous counsel in regard to his alleged actions at FTX and Alameda Research.

In an Aug. 23 submitting within the U.S. District Court for the Southern District of New York, SBF’s legal team stated Fenwick & West, the legislation agency that previously represented cryptocurrency trade FTX, supplied sure legal recommendation to the agency of which Bankman-Fried had been conscious. According to lawyers, Fenwick & West suggested FTX on its knowledge retention insurance policies, buyer agreements, phrases of providers, and agreements between the trade and Alameda.

“The defense intends to elicit evidence that Mr. Bankman-Fried was aware that Fenwick lawyers as well as in-house counsel for FTX, including Dan Friedberg, Can Sun, Ryne Miller, and others, were involved in reviewing and approving decisions related to these matters and others, which gave him assurance that he was acting in good faith,” stated the submitting. “Evidence of the defendant’s reliance on counsel is relevant to the question of intent and is not limited to situations where the defense can establish that the defendant formally sought out the advice of counsel, received legal advice, and followed the advice given.”

The protection, if accepted by a court docket, appeared to be geared toward offering some legal cowl for SBF’s alleged actions main to his legal case, together with directing that sure Slack and Signal communications between FTX and Alameda workers would routinely be deleted beginning in 2021. SBF’s lawyers had beforehand petitioned a judge to enable them to subpoena paperwork from Fenwick & West for his or her protection technique, a movement that was denied in June.

“Mr. Bankman-Fried’s consciousness that counsel was concerned within the issues listed above and others is related to rebut the Government’s declare that Mr. Bankman-Fried acted with legal intent to defraud.”

Related: FTX’s former law firm hit with lawsuit alleging it set up shadowy entities

The case towards Bankman-Fried is centered across the former FTX CEO allegedly misappropriating consumer funds for investments, private bills and donations to political campaigns. He faces 12 legal counts, which will likely be unfold throughout two trials beginning in October 2023 and March 2024, and has pleaded not responsible to all prices.

Bankman-Fried had been free on $250 million bail following his extradition from the Bahamas and arraignment within the U.S. in December 2022. However, on Aug. 11, a federal choose revoked his bail, inflicting him to be despatched to the Metropolitan Detention Center in Brooklyn following allegations of witness intimidation. At an Aug. 22 listening to, SBF’s lawyers claimed he had been surviving in jail largely on bread, peanut butter and water due to the shortage of vegan meal choices.

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