By Luc Cohen
NEW YORK (Reuters) – Sam Bankman-Fried, the jailed founding father of bankrupt cryptocurrency trade FTX, is due again in court docket on Wednesday for the primary time since his November fraud conviction for a listening to in Manhattan over his new lawyer’s attainable battle of curiosity.
Bankman-Fried, 31, in January employed protection lawyer Marc Mukasey to assist symbolize him throughout his sentencing and certain enchantment. A federal court docket jury discovered the previous billionaire responsible of stealing billions of {dollars} from FTX prospects.
Mukasey can also be representing the founding father of bankrupt cryptocurrency lender Celsius Networks, Alex Mashinsky, on fees of artificially inflating the worth of the corporate’s in-house crypto token and incomes $42 million from promoting his holdings. Mashinsky has pleaded not responsible.
In a Feb. 6 court docket submitting, prosecutors in Bankman-Fried’s case mentioned Mukasey and his accomplice Torrey Younger had attainable conflicts of curiosity as a result of Bankman-Fried’s Alameda Analysis hedge fund used stolen FTX buyer funds to repay cash it had borrowed from Celsius.
“Bankman-Fried might want to argue at sentencing or within the occasion of an enchantment that Celsius and comparable lenders weren’t defrauded and aren’t entitled to restitution,” prosecutors wrote. “Celsius, and probably Mashinsky, might take a opposite place.
They mentioned Bankman-Fried must be allowed to proceed with Mukasey so long as he understands the attainable battle.
Bankman-Fried, who has been held at Brooklyn’s Metropolitan Detention Middle since August 2023, is scheduled to be sentenced on March 28, and will face a long time in jail.
Mukasey, a former federal prosecutor in Manhattan and the son of former U.S. Lawyer Normal Michael Mukasey, was as soon as a part of former U.S. President Donald Trump’s private authorized staff.
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 in regards to the firm’s expertise – nicely beneath the 11 years prosecutors urged.
At Wednesday’s scheduled listening to, U.S. District Decide Lewis Kaplan is predicted to ask Bankman-Fried whether or not he would waive his proper to lift objections to the attainable battle sooner or later. Mashinsky, 59, waived that proper at a listening to on Tuesday earlier than U.S. District Decide John Koeltl. Mukasey and Younger mentioned at that listening to that they may pretty symbolize each Bankman-Fried and Mashinsky.
Bankman-Fried was represented all through his monthlong trial by Mark Cohen and Christian Everdell, who proceed to symbolize him alongside Mukasey and Younger.
Mashinsky is free on bail. His trial has been scheduled for Jan. 28, 2025.
