The U.S. Department of Justice (DOJ) revealed an extended witnesser database that includes FTX customers successful Sam Bankman-Fried’s (SBF) trial. This is coming connected the heels of the U.S. Securities and Exchange Commission (SEC) charges against the bankrupt steadfast auditor, Prager Metis.
On September 30, the DOJ said its witnesses included erstwhile FTX customers and different large stakeholders successful the defunct firm.
DOJ’s Witness List Against SBF
The DOJ intends to call some retail and organization investors with important assets wrong the FTX platform. These witnesses volition amusement their expectations and comprehension of FTX’s plus absorption system.
“[They] volition attest that they [held their assets connected FTX] with the anticipation and knowing that FTX would custody their assets abstracted from those of the company, would not transportation lawsuit assets to Alameda Research, and would not usage their assets for FTX’s oregon Alameda’s ain expenses.”
Due to logistical constraints, the DOJ requested the court’s support for 1 of the customers to attest remotely. This Ukrainian lawsuit mislaid a “substantial information of his beingness savings” connected FTX.
The DOJ’s database of witnesses volition besides see immoderate erstwhile FTX and Alameda executives who person previously admitted guilt. This radical comprises FTX CTO Gary Wang, erstwhile FTX Head of Engineering Nishad Singh, and erstwhile Alameda Research CEO Caroline Ellison.
SEC Charges FTX Auditor
In a abstracted development, the U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against FTX’s auditor, Prager Metis.
According to the fiscal regulator, Prager Metis violated auditor independency rules and aided and abetted their clients’ violations of national securities laws. The accounting steadfast ” improperly included indemnification provisions successful engagement letters for much than 200 audits, reviews, and exams.”
In 2021, Prager Metis conducted audits for some FTX US and FTX. This determination was seen arsenic a strategical effort by the speech to bolster assurance successful its operations by leveraging the credibility of the accounting firm’s work.
SBF’s Lawyer Accuses US Government of Biased Jury Questions
Meanwhile, SBF’s lawyer has voiced discontent with the government’s projected assemblage questions, saying they are presented successful a prejudicial mode and could perchance bias the jurors.
In the September 29 letter, the lawyer accused the authorities of utilizing improper connection to picture his client, referring to him arsenic a “fraudster” alternatively than an “alleged fraudster,” which helium believes could unfairly power the jury’s perception.
Consequently, the lawyer wants SBF’s projected assemblage questions, initially rejected, to beryllium considered.
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