With every passing day, new revelations with respect to FTX and its former executives are being made. The latest development that shaped up on late Friday was related to Sam Bankman-Fried’s on-going lawsuit.
Owing to conflict of interest, US District Judge Ronnie Abrams has stepped down from the SBF case. Apparently, Abrams’ husband is a partner at a law firm that advised the crypto exchange FTX.
Judge’s Husband Had No Involvement In FTX Representations
In the order, Abrams revealed that the law firm Davis Polk & Wardwell LLP represented parties that may be adverse to FTX and SBF in other proceedings. She further clarified,
“My husband has had no involvement in any of these representations. These matters are confidential and their substance is unknown to the court. Nonetheless, to avoid any possible conflict, or the appearance of one, the court hereby recuses itself from this action.”
Now, another judge will be appointed to take over the case. Apart from SBF, the involved parties also include Gary Wang and Caroline Ellison, two other executives who recently pleaded guilty to fraud. They are currently cooperating with investigations against them.
Ellison reportedly pleaded guilty to seven counts: conspiracy to commit wire fraud on customers of FTX, wire fraud on customers of FTX, conspiracy to commit wire fraud on lenders of Alameda Research as well as wire fraud on lenders of Alameda. Alongside, Ellison also pleaded guilty to conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.
The Co-Founder of FTX, Gary Wang, on the other hand, pleaded guilty to just four counts. That included conspiracy to commit wire fraud on customers of FTX, wire fraud on customers of FTX, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud.
SBF, on the other hand, has officially been released on $250 million bail. He was extradited to the US this week following an eight-day stay in The Bahamas Fox Hill correctional facility.