- Sam Bankman-Fried’s legal team seeks permission to question him about FTX’s legal counsel’s involvement in specific operations, aiming to establish his ‘good faith’ and counteract negative inferences from previous testimonies.
- The defense also requested to cross-examine FBI agents on inconsistencies between previous statements and testimonies given in court, a request that Judge Kaplan denied.
In the ongoing legal proceedings surrounding the downfall of FTX, Sam Bankman-Fried’s defense team is strategically working to clear the air and establish their client’s stance of ‘good faith.’ The attorneys have formally requested permission to delve into Bankman-Fried’s interactions and understandings of the involvement of FTX’s legal counsel during his anticipated testimony.
Legal Counsel at the Heart of the Matter
Set to testify starting Thursday, the former FTX chief finds his legal team ardently working to illuminate his perspective and knowledge of various facets of the FTX operations. In a document addressed to Judge Lewis A. Kaplan, the defense highlighted their intention to explore Bankman-Fried’s awareness of certain industry practices, his intentions, and beliefs particularly on November 12, 2022. This date is crucial as it marks the transfer of assets to Bahamian regulators—a move allegedly made against the advice of FTX’s in-house and external legal teams.
Delving deeper, the defense aims to counteract the negative implications drawn from Gary Wang’s testimony, which suggested that Bankman-Fried orchestrated the asset transfers in a bid to maintain control over FTX. By bringing to light Bankman-Fried’s understanding that auto-deletion policies were instituted under legal guidance, the defense intends to dismantle the prosecution’s argument that these policies were a part of fraudulent and criminal intent.
Establishing ‘Good Faith’
The legal team also plans to question Bankman-Fried about the counsel’s involvement in establishing North Dimension entities and in opening its account at Silvergate Bank. This line of questioning is crucial as it pertains directly to Bankman-Fried’s belief in the legitimacy of using Alameda-controlled entities to receive FTX customer deposits. Furthermore, his knowledge regarding the legal structuring and documentation of loans made from Alameda to FTX executives will be brought into focus.
The defense asserts that allowing Bankman-Fried to testify on these matters is imperative to counter any implications that he acted in bad faith. They emphasize the necessity of this to ensure a fair and comprehensive understanding of Bankman-Fried’s actions and intentions.
A Denied Request
In a concurrent development, Judge Kaplan has denied the defense’s request to have FBI special agents Luke Booth and Kristin Allain testify in court on Thursday. The defense’s angle was to highlight inconsistencies between the testimonies of FTX’s former co-founder Gary Wang and head of engineering Nishad Singh, and their previous statements to the FBI, adding another layer of complexity to the ongoing legal saga.
