Wednesday 7 December 2022

Sam Bankman-Fried Hires Lawyer Who Represented Ghislaine Maxwell As Fed Probes Ramp Up

Sam Bankman-Fried, former CEO of now-bankrupt crypto exchange FTX, has hired a lawyer who defended Ghislaine Maxwell against sex trafficking charges last year, according to Reuters Tuesday.

Bankman-Fried has retained Mark Cohen, a former federal prosecutor for the Eastern District of New York, amid allegations that the fallen crypto mogul is responsible for loaning more than $10 billion of client funds between FTX and another company he founded, Reuters reported. Maxwell was convicted last year for conspiring with Jeffrey Epstein to groom, sexually abuse and sex traffic minors, among other crimes. 

Martin Flumenbaum, the disgraced CEO’s former lawyer, stepped down from his role prior to giving a statement to Reuters Nov. 18, saying “that conflicts have arisen.”

As prosecutors and regulators continue to investigate the crypto firm’s historic collapse, they have begun pressing investors for access to communications they may have had with Bankman-Fried and other FTX executives, according to Reuters. The prosecutors are reportedly looking for evidence that Bankman-Fried or FTX misled investors about the firm’s situation, Reuters reported, citing anonymous sources.

Bankman-Fried has repeatedly denied in recent interviews that he was aware of any inappropriate use of customer funds at FTX or its sister firm, Alameda Research. He has also repeatedly said he has roughly $100,000 left from his multi-billion dollar fortune.

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