- Bankman-Fried and Ellison reach out to new defense attorney after US authorities probe on FTX crash.
- The FTX founder tapped Mark S. Cohen of the Cohen and Gresser law firm.
- Bankman-Fried tweeted that he would testify to congress about the FTX crash.
FTX founder Sam Bankman-Fried, and the former CEO of Alameda Research Caroline Ellison, reach out to new defense attorneys after US authorities probe on FTX crash.
According to Reuter’s report, Bankman-Fried’s spokesperson stated that the FTX founder tapped Mark S. Cohen, co-founder of the Cohen and Gresser law firm. Meanwhile, Ellison asked Wilmer Cutler Pickering Hale and Dorr law firm to represent her. Cohen had recently defended Ghislaine Maxwell in her trial, a former socialite and sex offender.
As part of the legal team, the FTX founder’s spokesperson stated David Mills, a professor at Stanford Law School, is also consulting with Bankman-Fired during the probe.
On Monday, Bankman-Fried tweeted that he would testify to congress about the FTX crash, after understanding and reviewing what had happened. The FTX founder further claimed he is uncertain about what might happen at December 13 hearing.
Moreover, Bankman-Fried and Ellison face civil lawsuits from FTX customers and are not charged with “crime” lawsuits.
Last month, Bankman-Fried hired Martin Flumenbaum of Paul, Weiss, Rifkind, Wharton, and Garrison law firm. But, the law firm decided not to represent the FTX founder due to internal conflicts.
Furthermore, Paul, Weiss, Rifkind, Wharton, and Garrison law found it difficult as Bankman-Fried tried to explain the FTX crash to the regulator, public, and reporters on Twitter. The attorneys claimed that such statements could make the legal process much more difficult for defense lawyers as they seek to manage the exchange’s demise.
After the FTX crash, US authorities are seeking valuable information from investors including details about communications they have had with the FTX and its executives. The Securities and Exchange Commission has also asked for similar investors.
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