Sam Bankman-Fried’s Lawyers Seek Court Approval to Interrogate FTX Co-Founder Gary Wang on $200M Alameda Loans
In Brief
Sam Bankman-Fried’s lawyers seek to interrogate FTX co-founder Gary Wang on the legitimacy of $200-300 million loans.
Lawyers representing Sam Bankman-Fried, amid his ongoing trial, are seeking to question FTX co-founder Gary Wang regarding the legal advice he relied upon when accepting loans from the linked hedge fund Alameda Research. This action by Sam Bankman-Fried’s lawyers challenges the claim made by prosecutors that Bankman-Fried used these borrowed funds in an improper or illegal manner.
In a late-night legal filing, Bankman-Fried’s legal team has requested permission from the judge to interrogate Gary Wang about his understanding of the loans received from Alameda Research. These loans, totaling $200-300 million, were used for venture investments and personal purchases, including a house in the Bahamas.
The defense argues that Wang’s belief in the loans being legitimate, structured with legal counsel, is crucial to counter the prosecution’s claim that they were merely a facade to conceal the source of the funds. Wang had previously stated that he trusted the lawyers involved in the transactions and didn’t think they would advise him to do something illegal.
The trial’s focus on the relationship between FTX and its hedge fund arm is central to the case, with the prosecution alleging that Bankman-Fried misused funds transferred to Alameda as his personal fund.
Bankman-Fried pleads not guilty to fraud charges, with his defense emphasizing the involvement of company counsel in the loan arrangements to support his claim of not realizing any impropriety.
Judge Lewis Kaplan has previously limited discussions regarding legal advice in the trial, citing potential jury confusion or prejudice. Wang’s testimony is expected to conclude soon, followed by Caroline Ellison, former head of Alameda Research and Bankman-Fried’s ex-girlfriend, who has also pleaded guilty and is cooperating with investigators.
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