US Government Raises Concerns Over Conflicts of Interest in FTX and Celsius Network Cases
The US government has expressed concerns about potential conflicts of interest in the ongoing criminal cases involving FTX and Celsius Network founders Sam Bankman-Fried and Alex Mashinsky. The issue revolves around the legal representatives handling both cases.
Alex Mashinsky and SBF Legal Team Present Headaches
In a court filing, the US prosecutors have requested a Curcio hearing to address the conflict of interests in both cases. They have identified Marc Mukasey and Torrey Young as legal counsels representing both Mashinsky and Bankman-Fried.
The prosecutors have suggested that a hearing be held for the defendants to waive their right to be represented by these attorneys. The court will determine the severity of the conflict and decide how to proceed. It may dismiss both counsels if a major conflict of interest is found.
Celsius and FTX’s Prior Relationship Could Cause Issues
Celsius Network, a decentralized finance lending protocol, previously lent funds to FTX subsidiary Alameda Research. Alameda Research then repaid these loans using customers’ funds. This connection between Celsius, FTX, and Alameda Research could create a conflict of interest in the ongoing criminal case.
If legal materials reveal rifts between the parties involved, the current legal representatives will be limited in sharing such information. Both Mashinsky and Bankman-Fried have been found guilty of multiple criminal charges related to fraud and promoting unregistered security tokens.
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