Sam “SBF” Bankman-Fried’s authorized crew is on the lookout for permission to probe the alleged involvement of FTX legal professionals in the issuance of $200 million price of loans from Alameda Research that had been accredited by Gary Wang.
As beforehand reported in the build-up to the extremely anticipated trial, an Oct. 1 court docket ruling provisionally barred Bankman-Fried from apportioning blame to FTX legal professionals allegedly concerned in structuring and approving loans between Alameda and FTX.
United States Judge Lewis Kaplan granted the federal government’s movement and dominated that Bankman-Fried’s authorized crew would have to request permission to point out FTX legal professionals’ involvement all through the trial.
Related: SBF’s Alameda minted $38B USDT to profit off arbitrage trading: Coinbase director
Following the preliminary cross-examination of former FTX co-founder Gary Wang by the prosecution on Oct. 9, the protection is now searching for permission to query Wang over the alleged involvement of FTX counsel in structuring loans issued to FTX by Alameda.
A letter filed on Oct. 9 highlighted the federal government’s questioning of Wang over a collection of private loans price up to $300 million from Alameda that FTX used to fund enterprise investments. Wang had additionally used some funds to buy a house in the Bahamas.
During the prosecution’s line of inquiry, Wang stated that both Bankman-Fried or FTX legal professionals had introduced him with loans that he was then directed to signal.
Bankman-Fried’s attorneys argue that the prosecution has already established that FTX legal professionals had been current and concerned in structuring and executing the loans, and so they intend to perform their very own line of questioning over the scope of their involvement.
The protection provides that it may probably introduce promissory notes that memorialized the loans to Wang, who has beforehand indicated to the prosecution in proffer conferences that he didn’t suspect FTX legal professionals would coerce him to signal unlawful agreements:
“Mr. Wang’s understanding that these were actual loans – structured by lawyers and memorialized in formal promissory notes that imposed real interest payment obligations – is relevant to rebut the inference that these were simply sham loans directed by Mr. Bankman-Fried to conceal the source of the funds.”
Cointelegraph journalist Ana Paula Pereira is on the bottom in New York overlaying the trial of Bankman-Fried. Her latest report from the Federal District Court in Manhattan highlights the defense’s efforts to paint Bankman-Fried as a young entrepreneur who tripped up amid the rapid growth of FTX and Alameda.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
