The Alameda loan case brings the FTX legal team into the spotlight.
Lawyers defending former FTX's CEO, Sam Bankman-Fried, are asking for court approval to investigate whether FTX legal advisors helped secure $200 million in loans from Alameda.
This comes on the heels of a court ruling that temporarily restricted blaming lawyers for any part in the loan deal. The judge in charge, Lewis Kaplan, indicated that any mention of FTX lawyers during the trial would require pre-approval from the court.
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Following the testimony of Gary Wang, FTX's co-founder, the defense has decided to apply for court permission to interrogate Wang about FTX legal team's involvement in structuring the controversial loans.
Earlier, the government probed Wang about receiving up to $300 million in personal loans from Alameda, some of which he used to purchase a property in the Bahamas.
Wang revealed that he was directed to sign the loan documents either by Bankman-Fried or by the legal advisors of FTX. According to the defense, this already confirms that FTX lawyers were not bystanders but active participants in the loan process.
The defense has indicated a willingness to introduce formalized loan agreements, known as promissory notes, to help elaborate on Wang's earlier statements. Wang had made it clear that he had no reason to believe that FTX's legal team would push him into signing any illegal contracts.
Mr. Wang's understanding that these were actual loans - structured by lawyers and memorialized in formal promissory notes that imposed real interest payment obligations - is relevant to rebut the inference that these were simply sham loans directed by Mr. Bankman-Fried to conceal the source of the funds.
The unfolding legal drama around Sam Bankman-Fried and FTX focuses on the complicated legal landscapes that players in the cryptocurrency world often navigate. As the trial progresses, it's clear that every detail, down to the involvement of legal counsel in loan agreements, will be scrutinized closely.
