Sam Bankman-Fried Due in Court For Hearing on Lawyer’s Conflict
Bankman-Fried’s Lawyer’s Possible Conflict
Sam Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, is due back in court on Wednesday for the first time since his November fraud conviction for a hearing in Manhattan over his new lawyer’s possible conflict of interest.
Controversy Surrounding Lawyer Marc Mukasey
Bankman-Fried, 31, in January hired defense lawyer Marc Mukasey to help represent him during his sentencing and likely appeal. A federal court jury found the former billionaire guilty of stealing billions of dollars from FTX customers.
Conflicts of Interest
In a Feb. 6 court filing, prosecutors in Bankman-Fried’s case said Mukasey and his partner Torrey Young had possible conflicts of interest because Bankman-Fried’s Alameda Research hedge fund used stolen FTX customer funds to repay money it had borrowed from Celsius Networks.
Legal Representation and Sentencing
Bankman-Fried, who has been held at Brooklyn’s Metropolitan Detention Center since August 2023, is scheduled to be sentenced on March 28, and could face decades in prison.
The Lawyer’s Background and Previous Cases
Mukasey, a former federal prosecutor in Manhattan and the son of former U.S. Attorney General Michael Mukasey, was once part of former U.S. President Donald Trump’s personal legal team. He also represented electric- and hydrogen-powered truck maker Nikola’s founder Trevor Milton, who was sentenced last year to four years after being convicted of fraud for lying to investors about the company’s technology.
Upcoming Court Hearing and Potential Conflict Resolution
At Wednesday’s scheduled hearing, U.S. District Judge Lewis Kaplan is expected to ask Bankman-Fried whether he would waive his right to raise objections to the possible conflict in the future. Mukasey and Young said at that hearing that they could fairly represent both Bankman-Fried and Mashinsky.
Legal Representation and Upcoming Trial
Bankman-Fried was represented throughout his monthlong trial by Mark Cohen and Christian Everdell, who continue to represent him alongside Mukasey and Young. Mashinsky is free on bail. His trial has been scheduled for Jan. 28, 2025.
