Sam Bankman-Fried Claims He Relied on Legal Advice in FTX Scandal

Lawyers for Sam Bankman-Fried assertion the FTX founder, who has fallen from grace, based his concern decisions connected ineligible proposal from institution attorneys earlier the cryptocurrency exchange’s downfall.

FTX Founder Bankman-Fried Claims Actions Were Based connected Legal Advice, Denies Fraudulent Intent

In a court document filed Wednesday, attorneys for Bankman-Fried from Cohen & Gresser LLP support helium received assurance from some in-house and outer lawyers that his actions complied with the law. They contend this indicates Bankman-Fried operated successful bully faith, without intentions of misleading FTX clients and investors.

Bankman-Fried’s lawyers state:

The defence intends to elicit grounds that Mr. Bankman-Fried was alert that Fenwick lawyers arsenic good arsenic in-house counsel for FTX, including Dan Friedberg, Can Sun, Ryne Miller, and others, were progressive successful reviewing and approving decisions related to these matters and others, which gave him assurance that helium was acting successful bully faith.

The papers notes that the 31-year-old cryptocurrency magnate understood lawyers had examined and endorsed FTX’s policies connected information storage, loans to institution founders, and contracts betwixt FTX and its associated hedge fund, Alameda Research. The filing besides asserts that attorneys guided the instauration of ammunition corporations purportedly utilized to improperly transportation lawsuit funds.

“Mr. Bankman-Fried’s consciousness that counsel was progressive successful the matters listed supra and others is applicable to rebut the government’s assertion that Mr. Bankman-Fried acted with transgression intent to defraud,” the filing reads. “These further disclosures are much than sufficient.”

Mark Cohen, an attorney, emphasized that grounds indicates Bankman-Fried didn’t run “with transgression intent.” Cohen antecedently represented Ghislaine Maxwell during her proceedings for intersexual offenses. Cohen’s defence for Maxwell was yet unsuccessful, arsenic the assemblage convicted her connected 5 retired of the six charges she faced.

Bankman-Fried has been indicted connected charges of ligament fraud and conspiracy implicit alleged misappropriation of billions successful FTX lawsuit funds anterior to the firm’s insolvency past year. He denies the allegations. Earlier this week successful court, his defence squad highlighted that helium has been surviving solely connected breadstuff and h2o portion held astatine the Metropolitan Detention Center successful Brooklyn, New York.

Using an advice-of-counsel defence presents some challenges and imaginable advantages for those accused of white-collar offenses. On 1 hand, it concedes perchance incriminating accusation – the suspect sought ineligible counsel, possibly hinting astatine doubts astir the legality of their actions. The defence mightiness besides surrender attorney-client confidentiality connected applicable topics.

Yet, if executed effectively, this strategy tin absolve the suspect by illustrating efforts to adhere to ineligible standards by seeking a lawyer’s counsel, and subsequently acting based connected the proposal received. This tin refute accusations that the suspect deliberately broke the law. In sum, portion the defence is dicey, it tin item a deficiency of fraudulent intent if reliance connected ineligible proposal seems justified.

What bash you deliberation astir Bankman-Fried’s latest ineligible strategy? Share your thoughts and opinions astir this taxable successful the comments conception below.