Sam "SBF" Bankman-Fried's legal team is making efforts to investigate the alleged involvement of FTX attorneys in a $200 million loan approved by Gary Wang on behalf of Alameda Research. This loan has come under scrutiny in the lead-up to Bankman-Fried's trial. A court ruling on October 1 temporarily prevented Bankman-Fried from assigning blame to individuals purportedly associated with the loan between Alameda and FTX, including FTX lawyers.
U.S. Judge Lewis Kaplan had granted the government's motion, requiring Bankman-Fried's legal team to seek permission to mention the involvement of FTX attorneys during the trial. Following the initial cross-examination of former FTX co-founder Gary Wang by prosecutors on October 9, the defense is now seeking permission to question Wang regarding the alleged role of FTX lawyers in Alameda's loans to FTX.
In a letter filed on October 9, the government's inquiries regarding Wang revolved around a series of personal loans, totaling up to $300 million, extended by Alameda, which FTX used for venture capital investments. Wang also utilized some of these funds to purchase a property in the Bahamas.
During the prosecution's questioning, Wang mentioned that loans were offered to him by Bankman-Fried or FTX lawyers, and he was then asked to sign them. Bankman-Fried's legal team contends that prosecutors have established the involvement of FTX attorneys in structuring and executing the loan. Consequently, they intend to conduct their own investigation into the extent of the lawyers' participation.
The defense suggests that it may introduce a promissory note documenting the loan to Wang. Wang previously stated during a proffer session with prosecutors that he had no doubt FTX lawyers would compel him to sign an illegal agreement.
The latest developments in federal district court in Manhattan indicate the defense's strategy to depict Bankman-Fried as a young entrepreneur who found himself managing the rapid growth of FTX and Alameda.
