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Sam Bankman-Fried to highlight FTX lawyers’ role in defense

Bankrupt FTX crypto exchange sues founder's parents for millions in alleged fraud

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TL;DR

  • Sam Bankman-Fried’s defense team is gearing up to counter allegations surrounding a controversial asset transfer in November 2022.
  • The defense aims to emphasize Bankman-Fried’s reliance on legal counsel during pivotal FTX operational decisions.
  • Lawyers for Bankman-Fried dispute the prosecution’s interpretation of FTX’s auto-deletion policies as evidence of fraudulent intent.

In a significant update on the high-profile legal tangle involving FTX’s Sam Bankman-Fried, new developments emerged this Wednesday. His defense team is preparing to challenge allegations against him, centering on the controversial asset transfer on November 12, 2022. These revelations surfaced in a letter to Judge Lewis A. Kaplan, detailing the defense’s strategy to counter implications from Gary Wang’s prior testimony.

Bankman-Fried’s lawyers focus on underlining his reliance on legal counsel during key operational decisions. This approach aims to counteract claims suggesting he ignored FTX’s in-house and external legal teams’ advice during the contentious asset transfer. Moreover, the defense is set to address the interpretation of auto-deletion policies, a point the prosecution deems indicative of his alleged fraudulent intent.

Adding clarity, the attorneys outlined that Bankman-Fried believed these policies were established following lawyers’ advice, directly challenging the prosecution’s narrative. His understanding of legal involvement extends to creating the North Dimension entities and the subsequent dealings with Silvergate Bank. These points, the defense insists, support his assertion that he perceived no impropriety in using Alameda-controlled entities for handling FTX customer deposits.

The defense is continuing. They plan to delve into the intricate legal oversight concerning loans from Alameda to FTX executives. They aim to demonstrate Bankman-Fried’s consistent effort to act within legal frameworks, countering any suggestion of a lack of good faith.

However, a setback occurred for Bankman-Fried’s side when Judge Kaplan rejected a crucial request. The defense sought to bring FBI special agents Luke Booth and Kristin Allain to the stand, eyeing inconsistencies in the testimonies of FTX’s former figures, Gary Wang and Nishad Singh. Compared to earlier statements to the FBI, these inconsistencies are pivotal points Bankman-Fried’s defense wishes to exploit.

The unfolding courtroom drama highlights the complexities surrounding legal boundaries in the burgeoning crypto industry. As each side strategizes for the intense cross-examinations slated for Thursday, observers await how these developments will influence the embattled exchange and its leadership’s fate.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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