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- Sam Bankman-Fried’s legal team seeks to question FTX co-founder Gary Wang about his reliance on legal advice when agreeing to loans from Alameda Research.
- Caroline Ellison, an ex-girlfriend and business associate of Sam Bankman-Fried, is scheduled to testify in the fraud trial later today.
In a recent legal filing, lawyers representing Sam Bankman-Fried are requesting the opportunity to question FTX co-founder Gary Wang regarding his reliance on legal counsel when consenting to a series of loans from the affiliated hedge fund, Alameda Research.
This request comes during the second week of Bankman-Fried’s trial. It aims to secure allowances from a judge who has previously refused to permit Sam Bankman-Fried to attribute alleged fraud to his legal advisors.
Prosecutors have previously examined Wang about loans totaling approximately $200 million to $300 million from Alameda. These were used for venture investments and the acquisition of a residence in the Bahamas. The filings from SBF’s lawyers read:
understanding that these were actual loans – structured by lawyers and memorialized in formal promissory notes that imposed real interest payment obligations – is relevant to rebut the inference that these were simply sham loans directed by Mr. Bankman-Fried to conceal the source of the funds.
Gary Wang, an executive at FTX, has given testimony about the wrongful practices at the exchange. Wang, in previous statements, indicated that he did not believe his legal advisors would instruct him to sign an illegal document, as mentioned in the filing.
The connection between FTX and its associated hedge fund division has been pivotal in the ongoing criminal case that emerged following the collapse of the cryptocurrency exchange in November 2022. The prosecution has contended that Bankman-Fried inappropriately utilized funds that were illicitly transferred to Alameda as his “personal piggy bank.”
SBF Ex-Girlfriend to Testify for FTX and Alameda Case
Caroline Ellison, former girlfriend and business associate of Sam Bankman-Fried (SBF), who plays a pivotal role as the key witness in his fraud trial, is scheduled to testify this week.
Ellison is expected to take the witness stand as early as Tuesday, and her testimony is highly anticipated for its potential to unveil the inner workings of the now-defunct cryptocurrency exchange, FTX, and its affiliated trading company, Alameda Research.
Before FTX and its subsidiary’s collapse, Ellison served as the Chief Executive Officer (CEO) of Alameda Research. Her close working relationship with Bankman-Fried granted her unique insights into his activities, making her a crucial source of information. Prosecutors assert that all members of this “inner circle” possess knowledge of the truth surrounding the alleged fraudulent activities attributed to the former CEO of the exchange.
Additionally, Sam Bankman-Fried is in trouble with the law. He can’t talk about a big investment in an AI company called Anthropic to defend himself in court, stated the US Department of Justice (DoJ). The government says the $500 million put into Anthropic in 2022 came from customers of his exchange. This makes people wonder if the money for that investment was legal and where it really came from.
