FTX CEO’s Lawyers Plan to Counter Testimony About Financial Ties
The lawyers representing Sam Bankman-Fried, the former CEO of FTX, are preparing to present an expert witness to counter the testimony given by former Alameda Research CEO Caroline Ellison and other witnesses regarding the financial ties between FTX and the trading firm. In a letter to New York District Judge Lewis Kaplan, Bankman-Fried’s attorneys stated that Joseph Pimbley from PF2 Securities, a litigation consulting firm, would testify on behalf of their client.
Pimbley’s Testimony
According to the letter, Pimbley will provide testimony based on information from FTX’s database. He will establish a timeline for the line of credit between FTX and Alameda by stating that it fluctuated between $1 billion and $3 billion from October 2021 to September 2022, with a decrease in June 2022. Additionally, Pimbley will testify that most non-FTX and non-Alameda user balances are in USD, Bitcoin (BTC), Ether (ETH), and Tether (USDT), and that over 75% of these balances are linked to spot margin activity or futures activity.
Rebuttal of Previous Testimonies
Pimbley’s testimony aims to counter the statements made by Ellison, FTX co-founder Gary Wang, former FTX engineering director Nishad Singh, and former FTX employee Adam Yedidia regarding Alameda’s line of credit and FTX customer use of margin trading. He will challenge Ellison’s claim of an “essentially unlimited line of credit” and Wang’s assertion that the firm borrowed around $3 billion from the credit line.
Pimbley’s Disclosure
Pimbley’s disclosure, which spans 54 pages, includes charts, excerpts from spreadsheets, diagrams, and database queries taken from FTX’s Amazon Web Services database. These documents pertain to the line of credit between FTX and Alameda from October 2021 to November 2022. Pimbley is being compensated at a rate of $720 per hour plus expenses for his testimony, but he has stated that he has no financial interest in the outcome of the case.
Hot Take: FTX CEO’s Defense Counters Financial Ties Testimony
The defense team representing former FTX CEO Sam Bankman-Fried is preparing to challenge the testimony given by witnesses regarding the financial ties between FTX and Alameda Research. They have enlisted an expert witness, Joseph Pimbley, who will testify based on FTX’s database information. Pimbley aims to establish a definitive timeline for the line of credit between FTX and Alameda and provide context to previous testimonies made by former FTX executives. His disclosure includes various documents extracted from FTX’s database. Pimbley’s testimony seeks to counter claims of an unlimited line of credit and substantial borrowing made by Alameda from FTX.
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