Conflict of Interest in the Sam Bankman-Fried and Mashinsky Case Gives Judges a Dilemma? – Bittime

Burned because of two lawyers in the Sam Bankman-Fried case (SBF) is representing another former CEO, Alex Mashinsky, then The United States Attorney asked Judge Lewis Kaplan to hold a hearing "regarding potential conflicts of interest.”

Marc Mukasey and Torrey Young are representatives of Sam Bankman-Fried and Mashinsky. Previously, Mashinsky served as CEO of Celsius, was indicted by the Justice Department last year and faces seven charges, including securities crimes and money laundering.

Prosecutors also submitted a letter to Judge John Koetl, who is overseeing Mashinsky's case.

"As proven by the trial evidence in United States v. Bankman-Fried, Celsius provided loans to Alameda Research, and some of the loans were repaid by Alameda Research to Celsius using customer funds. The relationship between Alameda Research and Celsius created the potential for conflict in several respects," that's what the letter said.

The Sam Bankman-Fried case hasn't seen any light yet?

If Sam Bankman-Fried argues, either at his sentencing hearing — which is scheduled for late March — or at a future appeal that lenders, including Celsius, were not defrauded by Alameda, then that could create a conflict of interest for the two attorneys.

Another potential conflict arises from the attorney's access to the records in both cases.

"If legal counsel sees something in the Sam Bankman-Fried materials that they believe could be useful to Mashinsky, they will be limited in their ability to share that information with Mashinsky or use it in Mashinsky's defense, and the same goes for any Mashinsky material they might rely on will be beneficial to Bankman-Fried at sentencing," the letter said.

However, prosecutors noted that "the potential conflicts are not that 'serious.'" They have requested hearings in both cases with judges to review any "potential conflicts of interest."

According to the letter, the attorneys agreed to the hearing. Sam Bankman-Fried was found guilty of all seven charges late last year. Both FTX and Celsius filed for bankruptcy. Celsius has emerged from bankruptcy, although FTX continues to work through the process after abandoning plans to reboot the exchange. What do you think about the Sam Bankman-Fried case?

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