Sam Bankman-Fried’s legal team is seeking authorization to investigate the alleged involvement of FTX attorneys in the issuance of $200 million in loans from Alameda that were approved by Gary Wang.
As previously reported in the lead-up to the anticipated trial, the court’s October 1 ruling temporarily prevented Bankman-Fried from assigning blame to FTX attorneys who were allegedly involved in structuring and approving the loans between Alameda and FTX.
U.S. Judge Lewis Kaplan granted the government’s request and ruled that Pinkman-Fried’s legal team would have to ask for permission to note the participation of FTX’s attorneys throughout the trial.
RELATED: SBF’s Alameda Mints $38 Billion USDT to Profit from Arbitrage Trading: Coinbase Manager
Following the initial questioning of former FTX co-founder Gary Wang by the prosecution on October 9, the defense is now seeking permission to question Wang regarding the alleged involvement of FTX lawyers in the structuring of loans issued to FTX by Alameda.
A letter filed on October 9 highlighted the government’s questioning of Wang over a series of personal loans worth up to $300 million from Alameda that FTX used to finance venture investments. Wang also used some of the money to buy a house in the Bahamas.
During the prosecution’s investigation, Wang said that Bankman-Fried or FTX lawyers provided him with loans that he was then directed to sign.
Bankman-Fried’s attorneys argue that the prosecution has already proven that FTX’s attorneys were present and participated in the structuring and execution of the loans and intend to implement their own line of questioning about the scope of FTX’s attorneys’ involvement.
The defense adds that it will likely produce promissory notes commemorating the loans to Wang, who has previously indicated to the prosecution in show meetings that he had no doubt that FTX’s lawyers would force him to sign illegal agreements:
“Mr. Wang’s understanding that these were actual loans — which were structured by lawyers and memorialized in formal promissory notes that imposed real interest payment obligations — is relevant to refuting the conclusion that these were merely sham loans directed by Mr. Bankman-Fried to conceal the source of the funds.”
Cointelegraph journalist Ana Paula Pereira is on the ground in New York covering the Bankman-Fried trial. Its latest report from federal district court in Manhattan highlights defense efforts to paint Bankman-Fried as a young businessman who stumbled amid the rapid growth of FTX and Alameda.
Magazine: Can You Trust Cryptocurrency Exchanges After the FTX Crash?