March 27, 2024
Sam Bankman-Fried’s Legal Battle
Latest Cryptocurrency News

Expert Witness to Challenge Testimonies in Sam Bankman-Fried’s Legal Battle

Former FTX CEO Sam Bankman-Fried is preparing to present a financial expert to challenge the testimonies of several witnesses in a legal case. Bankman-Fried’s legal team plans to counter the statements made by former Alameda Research CEO Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia regarding the financial connections between FTX and the trading firm.

In a letter addressed to New York District Judge Lewis Kaplan on October 23, Bankman-Fried’s lawyers revealed that they will call upon Joseph Pimbley from PF2 Securities, a litigation consulting firm, to provide expert testimony on behalf of their client.

According to the letter, Pimbley will use data from FTX’s database to testify that Alameda’s line of credit with FTX fluctuated between approximately $1 billion and $3 billion from October 2021 to September 2022. Pimbley will also highlight a decrease in the line of credit in June 2022, with the goal of establishing a clear timeline for this financial arrangement.

Additionally, Pimbley will testify that the majority of balances for users not associated with FTX or Alameda are denominated in United States dollars, Bitcoin, Ether, and Tether. He will further point out that over 75% of the balances for non-FTX and non-Alameda users are linked to accounts with spot margin features, spot margin lending capabilities, or show futures trading activity. This information is meant to provide context to the testimonies given by former FTX executives. Furthermore, Pimbley’s testimony aims to challenge the claims made by Ellison, FTX co-founder Gary Wang, former FTX engineering director Nishad Singh, and former FTX employee Adam Yedidia regarding Alameda’s line of credit and FTX customers’ use of margin trading.

Specifically, Pimbley intends to counter Ellison’s assertion that Alameda had “an essentially unlimited line of credit on FTX” and Wang’s statement that the firm had borrowed “around $3 billion” from the credit line. Pimbley’s 54-page disclosure includes various charts, excerpts from spreadsheets, diagrams, and database queries sourced from FTX’s Amazon Web Services database, all related to FTX’s line of credit with Alameda from October 2021 to November 2022.

It’s worth noting that Pimbley is being compensated at a rate of $720 per hour, in addition to expenses, for his expert testimony. However, he has explicitly stated that he holds “no financial interest in the outcome of this case.”

Earlier, Bankman-Fried’s legal team had proposed seven expert witnesses, but Judge Kaplan had initially barred their testimony. Nevertheless, they were allowed to testify in the future if their testimonies were intended to respond to the statements made by government witnesses and clarify their claims.

Image by freepik

Related posts

Bitcoin Blockchain Welcomes Classic SNES Games

Chloe Taylor

KyberSwap Under Siege: Hacker Requires Executive Control for Fund Return

Henry Clarke

Bitcoin Mining Difficulty Reaches All-Time High, Posing Challenges for Miners

Henry Clarke

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More