Sam Bankman-Fried to stick with new lawyers despite possible conflict By Reuters

© Reuters. FILE PHOTO: Former FTX Chief Govt Sam Bankman-Fried, who faces fraud fees over the collapse of the bankrupt cryptocurrency change, leaves the Manhattan federal courtroom in New York Metropolis, U.S. March 30, 2023. REUTERS/Andrew Kelly/File Picture

By Luc Cohen

NEW YORK (Reuters) -Sam Bankman-Fried, the jailed founding father of bankrupt cryptocurrency change FTX, appeared in courtroom on Wednesday for the primary time since his November fraud conviction and confirmed he needed to stay with new legal professionals regardless of a potential battle of curiosity.

Bankman-Fried, 31, in January employed protection legal professionals Marc Mukasey and Torrey Younger to characterize him by his March 28 sentencing. He may face a long time in jail after a Manhattan federal courtroom jury discovered the previous billionaire responsible of stealing billions of {dollars} from FTX prospects.

At a quick listening to earlier than U.S. District Choose Lewis Kaplan in Manhattan, Bankman-Fried stated he was snug hiring Mukasey and Younger although in addition they characterize the founding father of bankrupt cryptocurrency lender Celsius Networks, Alex Mashinsky, who has pleaded not responsible to separate fraud fees.

Kaplan requested Bankman-Fried, who wore a tan jail shirt and chains round his ankles, to explain the potential battle in his personal phrases.

“At a excessive stage, in addition they characterize Alex Mashinsky,” stated a clean-shaven Bankman-Fried, whose curly hair has grown longer since his monthlong trial final 12 months.

Bankman-Fried described Celsius as “a agency that the companies I ran had enterprise interactions with.”

Mukasey, a former federal prosecutor in Manhattan and the son of former U.S. Lawyer Basic Michael Mukasey, was as soon as a part of former President Donald Trump’s private authorized group.

He additionally represented electric- and hydrogen-powered truck maker Nikola (NASDAQ:)’s founder Trevor Milton, who was sentenced final 12 months to 4 years after being convicted of fraud for mendacity to buyers concerning the firm’s know-how – effectively beneath the 11 years prosecutors urged.

Bankman-Fried informed Kaplan he had consulted with legal professionals Mark Cohen and Christian Everdell, who represented him throughout his trial, about Mukasey’s potential battle. Bankman-Fried stated he additionally had mentioned it with Alexandra Shapiro, one other lawyer who will deal with his eventual attraction.

Mukasey stated Cohen and Everdell will quickly request Kaplan’s permission to withdraw from the case.

In a Feb. 6 courtroom submitting, prosecutors in Bankman-Fried’s case stated his Alameda Analysis hedge fund used stolen FTX buyer funds to repay cash it borrowed from Celsius. The prosecutors stated Bankman-Fried and Mashinsky might have completely different opinions as as to if Celsius was defrauded and entitled to restitution.

Bankman-Fried, held at Brooklyn’s Metropolitan Detention Middle since August 2023, stated on Wednesday he has been taking anti-depressant remedy and Adderall, which is used to deal with consideration deficit hyperactivity dysfunction. Throughout his trial, Bankman-Fried’s legal professionals stated in October he wanted a better Adderall dose than he had been receiving in jail every morning to focus.

Mashinsky, 59, waived his proper to a lawyer with none potential conflicts at a listening to on Tuesday earlier than U.S. District Choose John Koeltl. Mukasey and Younger stated at that listening to that they might pretty characterize each Bankman-Fried and Mashinsky.

Mashinsky is free on bail. His trial on fees of artificially inflating the worth of the corporate’s in-house crypto token and incomes $42 million from promoting his holdings is scheduled for Jan. 28, 2025.