Sam Bankman-Fried, founder of cryptocurrency exchange FTX, is making a bold move in his ongoing legal battle.
Bankman-Fried seeks to highlight the lawyers’ involvement in what prosecutors described as a “$200 million scam” involving Alameda Research, the hedge fund arm of FTX.
Wang’s testimony sheds light on the legal structure of Alameda Loans
Lawyers representing Sam Bankman-Fried are requesting permission to question FTX co-founder Gary Wang regarding the legal guidance he received when accepting loans from the Alameda Research-related hedge fund.
Wang was previously questioned about loans he took from Alameda worth $200-300 million. he claimed He believed the transactions were legitimate loans, structured under the guidance of legal counsel and supported by formal promissory notes.
Wang, who previously believed lawyers would not advise him to sign anything illegal, is cooperating with investigators after pleading guilty.
Bankman-Fried denies embezzlement in the ongoing trial
At the heart of this legal battle is the prosecution’s claim that Bankman-Fried embezzled the funds by illegally transferring them to Alameda Research. Prosecutors painted a picture of Alameda as SBF’s “personal piggy bank,” a description the defendant denied.
Bankman-Fried, who has pleaded not guilty to fraud charges, is using the company’s lawyers’ involvement in the loan arrangements to support his claim of ignorance regarding any wrongdoing. However, Judge Lewis Kaplan previously cautioned against arguments related to advice from counsel, citing concerns that such arguments could confuse or prejudice a jury.
The trial is expected to continue with Wang’s testimony, which could provide further insight into the inner workings of Alameda Research and FTX. After Wang, Carolyn Ellison, the former head of Alameda Research and a former friend of Bankman-Fried, is scheduled to testify.
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