The U.S. Division of Justice (DOJ) revealed an in depth witness checklist that features FTX prospects in Sam Bankman-Fried’s (SBF) trial. That is approaching the heels of the U.S. Securities and Change Fee (SEC) costs in opposition to the bankrupt agency auditor, Prager Metis.
On September 30, the DOJ mentioned its witnesses included former FTX prospects and different main stakeholders within the defunct agency.
DOJ’s Witness Listing In opposition to SBF
The DOJ intends to call each retail and institutional buyers with substantial belongings throughout the FTX platform. These witnesses will present their expectations and comprehension of FTX’s asset administration system.
“[They] will testify that they [held their assets on FTX] with the expectation and understanding that FTX would custody their belongings separate from these of the corporate, wouldn’t switch buyer belongings to Alameda Analysis, and wouldn’t use their belongings for FTX’s or Alameda’s personal bills.”
As a consequence of logistical constraints, the DOJ requested the courtroom’s permission for one of many prospects to testify remotely. This Ukrainian buyer misplaced a “substantial portion of his life financial savings” on FTX.
The DOJ’s checklist of witnesses can even embody some former FTX and Alameda executives who’ve beforehand admitted guilt. This group includes FTX CTO Gary Wang, former FTX Head of Engineering Nishad Singh, and former Alameda Analysis CEO Caroline Ellison.
SEC Fees FTX Auditor
In a separate improvement, the U.S. Securities and Change Fee (SEC) has initiated legal proceedings in opposition to FTX’s auditor, Prager Metis.
In accordance with the monetary regulator, Prager Metis violated auditor independence guidelines and aided and abetted their purchasers’ violations of federal securities legal guidelines. The accounting agency ” improperly included indemnification provisions in engagement letters for greater than 200 audits, evaluations, and exams.”
In 2021, Prager Metis carried out audits for each FTX US and FTX. This transfer was seen as a strategic effort by the alternate to bolster confidence in its operations by leveraging the credibility of the accounting agency’s work.
SBF’s Lawyer Accuses US Authorities of Biased Jury Questions
In the meantime, SBF’s lawyer has voiced discontent with the federal government’s proposed jury questions, saying they’re introduced in a prejudicial method and will probably bias the jurors.
Within the September 29 letter, the lawyer accused the federal government of utilizing improper language to explain his consumer, referring to him as a “fraudster” slightly than an “alleged fraudster,” which he believes might unfairly affect the jury’s notion.
Consequently, the lawyer desires SBF’s proposed jury questions, initially rejected, to be thought-about.
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