TechFlow news, according to Reuters, Sam Bankman-Fried (SBF), the founder of the bankrupt cryptocurrency exchange FTX, will return to court on Wednesday local time, where he will face a hearing in Manhattan over potential conflicts of interest involving his new legal counsel.
In January, 31-year-old SBF hired attorney Marc Mukasey to assist in representing him during sentencing and any potential appeal. A federal jury found the former billionaire guilty of stealing billions of dollars from FTX customers. Attorney Mukasey also represents Alex Mashinsky, the founder of the now-bankrupt cryptocurrency lending firm Celsius Networks, who is accused of artificially inflating the value of the company's internal crypto tokens and profiting $42 million by selling his cryptocurrency holdings. Mashinsky has pleaded not guilty.
In a court filing on February 6, prosecutors in the SBF case said that Mukasey and his partner Torrey Young may have a conflict of interest because SBF’s Alameda Research hedge fund used stolen FTX customer funds to repay loans borrowed from Celsius.
Prosecutors wrote, “SBF may wish to argue during sentencing or appeal that Celsius and similar lending firms were not defrauded and are not entitled to compensation.” Celsius, and potentially Mukasey, might take an opposing position.
