Founder of FTX hired a former prosecutor to defend himself in court
2022.12.06 14:27
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Founder of FTX hired a former prosecutor to defend himself in court
Budrigannews.com – A spokesperson for Sam Bankman-Fried said on Tuesday that Bankman-Fried has hired former prosecutor Mark S. Cohen to represent him as U.S. authorities investigate the collapse of the crypto exchange.
According to a previous report from Reuters, regulators all over the world, including those in the Bahamas, where FTX is based, and in the United States, are looking into the role that FTX’s top executives, including Bankman-Fried, played in the stunning collapse of the company. The crypto trade sought financial protection last month after a liquidity emergency that saw no less than $1 billion of client reserves disappear.
Bankman-Broiled has held Cohen, of Cohen and Gresser, Bankman-Seared’s representative Imprint Botnick said in a messaged articulation. Cohen did not respond when asked to comment.
Bankman-Fried has not been accused of anything wrong by regulators or the prosecution. He is confronting common claims from financial backers and FTX clients.
David Factories, a teacher at Stanford Graduate school, is counseling regarding this situation, Botnick said. Mills didn’t say anything when asked about it. Previously, Mills’ advisory work for Bankman-Fried was reported by Semafor.
Cohen recently represented Ghislaine Maxwell in her sex trafficking trial. He was previously an assistant United States attorney for the Eastern District of New York.
Martin Flumenbaum of the law firm Paul, Weiss, Rifkind, Wharton & Garrison had previously been hired by Bankman-Fried; however, the firm informed Bankman-Fried last month that due to conflicts, it would no longer be representing him.
According to two sources with knowledge of the requests, U.S. authorities have sought information from FTX investors and potential investors in recent weeks. According to the sources, federal prosecutors in New York are looking for specifics on any communications these companies had with the crypto company and its executives, including Bankman-Fried. Bloomberg recently detailed the data demands.
The Protections and Trade Commission has been requesting comparable data from financial backers also, one of the sources said.
On the condition of anonymity, these anonymous sources and attorneys have stated that authorities in the United States are likely looking for any evidence of material misrepresentations of information to investors.
The SEC and Manhattan’s U.S. attorney’s office declined to comment on the request for information.
Reuters has previously reported that in order to make up for a shortfall at the crypto trading firm, FTX secretly transferred customer funds to its affiliate Alameda Research.
Bankman-Fried stated via video link on Wednesday at the New York Times’ Dealbook Summit with Andrew Ross Sorkin that he did not knowingly combine funds from customers on FTX with funds from Alameda Research, his proprietary trading firm.
Bankman-Fried stated, “I didn’t ever try to commit fraud,” and he added that he does not personally believe he is criminally liable.
