Sam Bankman-Fried Sticks with Lawyers Amid Conflict of Interest Concerns
Disgraced former FTX CEO Sam Bankman-Fried (SBF) has confirmed that he will continue to work with his new lawyers, Marc Mukasey and Torrey Young. This comes after concerns were raised about a potential conflict of interest, as the same lawyers are also representing Celsius CEO Alex Mashinsky.
In a hearing, U.S. Southern District Judge Lewis Kaplan questioned Bankman-Fried about the conflict. Bankman-Fried stated that he consulted his current lawyers, Mark Cohen and Christian Everdell, as well as his appeal lawyer Alexandra Shapiro, about the new appointments.
Cohen and Everdell are expected to request permission from Judge Kaplan to withdraw from the case. Mukasey confirmed this information to Reuters.
Potential Conflict of Interest
The main concern regarding Bankman-Fried’s new legal team is the fact that Celsius owes Alameda Research $12.8 million. Alameda Research was the trading company affiliated with SBF’s FTX.
When Alameda suffered losses from bad trades, SBF/FTX transferred millions of dollars in customer funds to Alameda, resulting in what is now recognized as the largest fraud in crypto history.
Bankman-Fried’s Legal Troubles
SBF, once considered one of the youngest multibillionaires in the world, faced a downfall in November 2022 when his company collapsed.
Former FTX executives testified against him, revealing that he had misused customer funds and presented a false image of financial stability.
A recent prison photo of SBF shared by crypto influencer Tiffany Fong showcased his stark transformation from influential CEO to inmate.
Furthermore, FTX investors have filed a class action lawsuit against law firm Sullivan and Cromwell for allegedly aiding FTX in the months leading up to its collapse.
Bankman-Fried’s sentencing is scheduled for March 28, 224.
Hot Take: Bankman-Fried’s Legal Saga Continues
The legal troubles of former FTX CEO Sam Bankman-Fried persist as he decides to stand by his new lawyers despite concerns of a conflict of interest. This development raises questions about the integrity of his defense team and the potential impact it may have on his case. With the revelation that Celsius owes a significant amount to Alameda Research, a company affiliated with Bankman-Fried’s FTX, the conflict becomes more apparent. As the sentencing date approaches, it remains to be seen how these legal challenges will affect Bankman-Fried’s fate. Stay tuned for further updates on this high-profile crypto scandal.
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