Markets News Report
October 10, 2023

Sam Bankman-Fried’s Lawyers Seek Court Approval to Interrogate FTX Co-Founder Gary Wang on $200M Alameda Loans

FTX Co-Founder Gary Wang's Legal Advice Scrutinized in $200M Sam Bankman-Fried Trial

Lawyers representing Sam Bankman-Fried, amid his ongoing trial, are seeking to question FTX co-founder Gary Wang regarding the legal advice he relied upon when accepting loans from the linked hedge fund Alameda Research. This action by Sam Bankman-Fried’s lawyers challenges the claim made by prosecutors that Bankman-Fried used these borrowed funds in an improper or illegal manner.

In a late-night legal filing, Bankman-Fried’s legal team has requested permission from the judge to interrogate Gary Wang about his understanding of the loans received from Alameda Research. These loans, totaling $200-300 million, were used for venture investments and personal purchases, including a house in the Bahamas. 

The defense argues that Wang’s belief in the loans being legitimate, structured with legal counsel, is crucial to counter the prosecution’s claim that they were merely a facade to conceal the source of the funds. Wang had previously stated that he trusted the lawyers involved in the transactions and didn’t think they would advise him to do something illegal. 

The trial’s focus on the relationship between FTX and its hedge fund arm is central to the case, with the prosecution alleging that Bankman-Fried misused funds transferred to Alameda as his personal fund. 

Bankman-Fried pleads not guilty to fraud charges, with his defense emphasizing the involvement of company counsel in the loan arrangements to support his claim of not realizing any impropriety. 

Judge Lewis Kaplan has previously limited discussions regarding legal advice in the trial, citing potential jury confusion or prejudice. Wang’s testimony is expected to conclude soon, followed by Caroline Ellison, former head of Alameda Research and Bankman-Fried’s ex-girlfriend, who has also pleaded guilty and is cooperating with investigators.

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About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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