Former FTX And Celsius Bosses Keep Using The Same Lawyer In Court

Former FTX CEO, Sam Bankam-Fried. (Photo; Doc. Asset Entrepreneur)

JAKARTA - Sam Bankman-Fried and Alex Mashinsky, two former CEOs of the FTX and Celsius decentralized crypto exchanges, chose to stick with the same lawyers in the fraud trial that ensnared them. The decision raised questions about the conflict of interest, given the evidence that Celsius had lent money to Alameda Research, partner firm FTX, and was paid back with FTX customer funds.

Earlier this month, US prosecutors asked for a special hearing to assess whether lawyers Marc Mukasey and Torrey Young had a conflict of interest in representing Bankman-Fried and Mashinsky. These two lawyers have previously worked together in other cases involving crypto clients.

In a separate hearing this week, Bankman-Fried and Mashinsky stated that they had no objection to the same lawyer and rejected their right to get another lawyer. They also said that they believed their lawyers could represent them professionally and fairly.

According to New York law, lawyers can only represent two clients with potentially contradictory interests if clients give written consent. Mukasey and Young must also ensure that they do not share classified information between Bankman-Fried and Mashinsky or use information from one party to harm others.

Bankman-Fried and Mashinsky are two important figures in the crypto industry, each establishing FTX and Celsius, the world's two largest lending and lending platforms. However, in November 2022, FTX went bankrupt after it was revealed that Bankman-Fried was suspected of committing fraud, money laundering, and other legal violations.

In December 2022, Bankman-Fried was arrested in the Bahamas and extradited to the US, where he was charged with seven criminal charges. Mashinsky was also charged with a similar charge, although he was not detained. Prosecutors claim that Mashinsky was involved in a joint Bankman-Fried fraud scheme, in which Celsius lent money to Alameda Research and paid back with FTX customer funds.

In November 2023, Bankman-Fried was found guilty of all charges he faced. The verdict hearing is scheduled for March 28, 2024. Mashinsky will undergo trial in January 2025.