Sam Bankman-Fried’s attorneys sent a letter to Judge Lewis A. Kaplan seeking to elicit on cross-examination of former FTX chief technology officer Gary Wang evidence regarding the involvement of counsel in structuring the loans issued by Alameda Research. The defense also seeks to cross-examine star witness Alameda Research CEO Caroline Ellison after Wang finishes his testimony on Tuesday.
Sam Bankman-Fried Blames FTX Attorneys For Sham Loans
According to a new court filing late October 9, Sam Bankman-Fried’s defense team seeks to elicit on cross-examination of Gary Wang for evidence of lawyers’ presence or involvement in the structuring of loans by Alameda Research. However, Judge Kaplan earlier precluded the defense from eliciting evidence of the presence or involvement of attorneys.
Prosecutors examined Gary Wang about loans worth $200-$300 million from Alameda Research to fund venture investments by FTX and buy a house in the Bahamas. Wang believes that these were actual loans structured and memorialized in formal promissory notes having interest payment obligations.
“Mr. Wang’s understanding of the lawyers’ involvement in the loans is directly relevant to Mr. Bankman-Fried’s good faith and lack of criminal intent.”
SBF’s attorney argues it provides evidence that Sam Bankman-Fried didn’t direct sham loans to conceal the source of the funds. Moreover, it negates the prosecutors’ money laundering allegations. If Judge Kaplan approves the defense’s request, attorneys can give a small twist to the case.
However, testimony by Alameda CEO Caroline Ellison will prove that Sam Bankman-Fried misappropriated customer funds. Both Gary Wang and Caroline Ellison have pleaded guilty and cooperate with the prosecutors.
Defense lawyers also seek to cross-examine Caroline Ellison to undermine her statements. Ellison to delve into both Alameda’s business practices and her personal relationship with Sam Bankman-Fried.
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