FTX Founder Sam Bankman-Fried to Use Advice-of-Counsel Defense in Fraud Trial
FTX founder Sam Bankman-Fried’s defense team plans to assert that he had no intention of breaking the law in his upcoming criminal fraud trial. They will use attorneys from Fenwick & West and FTX’s former in-house counsel to support their argument. Bankman-Fried’s lawyers claim that these attorneys advised him and gave him assurance that he was acting in good faith. Bankman-Fried recently pled not guilty to the charges filed against him by the Department of Justice.
Key Points:
– Bankman-Fried’s defense will rely on the advice-of-counsel defense, stating that he relied on legal advice and made complete disclosures to his counsel.
– The defense will argue that Bankman-Fried’s reliance on the advice of counsel is a fair defense, and the government will need to prove beyond a reasonable doubt that he had an unlawful intent to commit fraud.
– However, former Assistant U.S. Attorney Kevin O’Brien believes this defense strategy is unlikely to be successful and may backfire if more damaging information is revealed.
– Bankman-Fried’s counsel claims that he received assurance on billions of dollars in loans made with company cash to himself and insiders at FTX and Alameda Research.
– The lawyers mentioned in the filing also provided input on a “Payment Agent Agreement” and FTX’s customer agreements, which have been called into question.
Hot Take:
Bankman-Fried’s defense strategy of relying on the advice-of-counsel defense may be a risky move. While it may help him argue that he acted in good faith, it could also open up his attorney-client communications to scrutiny and potentially reveal damaging information. The success of this defense will depend on the strength of the evidence and arguments presented by both sides in court.
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