On October 9, 2023, the legal team of Samuel Bankman-Fried, represented by COHEN & GRESSER LLP, filed a letter to U.S. District Judge Lewis A. Kaplan. The letter was filed in response to the court’s Oct. 1 order, which temporarily limited the defense from discussing FTX attorneys’ involvement in the case without prior notice to the court and government.
Defense wants to question Gary Wang
The defense is specifically interested in the cross-examination of Gary Wang, a former co-founder of FTX, about the involvement of FTX lawyers in structuring loans made to him by Alameda Research. During initial cross-examination on October 9, Wang revealed that he had received personal loans worth approximately $200-$300 million from Alameda Research. These loans were used to finance venture investments by FTX and to purchase a home in the Bahamas.
Topics for cross-examination
The defense aims to question Wang on several topics, including:
1. Which lawyers were involved in the loans?
2. What was the nature of their involvement?
3. What documents have they prepared?
4. What were the terms of the loan and Wang’s obligations under it?
Implications for the case
The defense argues that Wang’s understanding of the attorneys’ involvement is directly relevant to establishing Bankman-Fried’s good faith and lack of criminal intent. The government has alleged that Bankman-Fried took steps to conceal the origins of investments and expenditures financed by transfers originating from Alameda Research.
The indictment further alleges that Bankman-Fried accomplished this by borrowing more than $1 billion from Alameda and overseeing “similar loans by other FTX executives.” Wang’s insight that these were actual loans, structured by lawyers and memorialized in formal promissory notes, is relevant to rebutting the inference that these were simply sham loans orchestrated by Mr. Bankman-Fried to conceal the source of the funds.
The defense’s request to question the involvement of FTX attorneys aims to refute the government’s allegations and establish Bankman-Fried’s lack of criminal intent. The court’s decision on this matter could have significant consequences for the ongoing case, especially with regard to the money laundering charges. If the court grants the defense’s request, it could open the door for further questioning that could potentially exonerate Bankman-Fried.
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