KEY POINTS
- Bankman-Fried had shorter hair when he made a brief court appearance Wednesday
- Prosecutors alleged that Alameda Research used stolen FTX customer funds to repay Celsius
- One of SBF’s new lawyers also represents Alex Mashinsky, the founder of Celsius
Sam Bankman-Fried (SBF), the disgraced founder of fallen cryptocurrency exchange FTX, confirmed in a brief court hearing Wednesday that he will retain his newly-hired defense lawyers through his sentencing late next month – even if there could be potential conflicts of interest.
His Wednesday appearance before U.S. District Judge Lewis Kaplan in Manhattan marks his first since he was convicted of federal fraud charges. He hired Marc Mukasey, a former member of ex-president Donald Trump’s legal team, and Torrey Young in January to represent him until he is sentenced on March 28.
Bankman-Fried told Kaplan that he was comfortable in working with his new lawyers even though Mukasey also represents Alex Mashinsky, the founder of another fallen crypto firm, Celsius Networks, which SBF said was “a firm that the firms I ran had business interactions with,” as per Reuters.
Prosecutors alleged in a February court filing that SBF’s Alameda Research hedge fund, a sister company of FTX, used stolen FTX client funds to repay the money it owed Celsius, as per the outlet. It is unclear how the case will turn out, but prosecutors are supposedly planning to describe Mashinsky as a victim of Bankman-Fried.
The former crypto darling was “foot-tapping” during his short court appearance, the Associated Press reported. He told Kaplan that he understood the possible conflicts and wanted to be represented by Mukasey anyway.
Donning a tan jail shirt and chains around his ankles, the 31-year-old told Kaplan that he has consulted the possible conflict of interest with lawyers Christian Everdell and Mark Cohen, who were his legal counsel during trial. He added that he discussed the matter with Alexandra Shapiro, another lawyer who will handle his appeal.
Bankman-Fried revealed Wednesday he had been taking anti-depressant medication and Adderall, a combination medication used to treat attention deficit hyperactivity disorder (ADHD).
His court appearance comes after his first supposed prison photo was published by content creator Tiffany Fong on X (formerly Twitter). In the said image, he is seen posing beside other inmates, whose faces were blurred. The only un-blurred faces were those of SBF and a recently freed inmate and former gang member, whom Fong called G Lock.
The ex-inmate told Fong that the photo was snapped on Dec. 17, 2023. It shows Bankman-Fried with a thinner frame, a beard and his signature wild hair. However, he appeared in court with shorter hair and seemed “more buttoned-down than the freewheeling persona he crafted” during his time at the top of the crypto circle, as per AP.
Meanwhile, the Department of Justice (DOJ) said it was not planning to pursue additional charges against SBF, which include unlawful political campaign donations and conspiracy to bribe foreign officials among others.
