- Sam Bankman-Fried’s legal team files to counter DOJ’s witnesses.
- The team has presented a financial expert as a key defense witness to testify.
- The financial expert will address testimonies regarding the charges against SBF.
As the high-stakes trail of Sam Bankman-Fried nears its conclusion, the odds continue to appear stacked against the disgraced CEO. With several witness testimonies painting a bleak picture of SBF’s culpability in the criminal charges against him, his defense team is taking extraordinary measures to safeguard the former CEO’s fate.
In efforts to turn the tide of the high-stakes legal battle in his favor, SBF’s attorneys have now introduced a new player to the courtroom.
SBF’s Legal Team Presents Sole Expert Witness to Bolster Defense
In a court filing on October 23rd, SBF’s defense team submitted an amended expert disclosure, presenting a PF2 Securities litigation consultant, Joseph M. Pimbley, Ph.D., as an expert witness in the ongoing trial.
Pimbley is expected to present compelling testimony responding to the testimonies presented by several government witnesses, such as Caroline Ellison, Gary Wang, and Professor Peter Easton, on various aspects related to Alameda’s line of credit and FTX customer activities.
The foundation of the litigation consultant’s testimony will be based on records extracted from Alameda Research’s database to justify the fluctuation of the company’s line of credit between October 2021 and September 2022. His expert opinion will assert that the usage fluctuated between approximately $1 billion and $3 billion within the timeframe, with a notable decrease of a substantial portion in June 2022.
The legal team emphasized that Pimbley’s testimony will refute Caroline Ellison’s testimony that Alameda had “an essentially unlimited line of credit on FTX” and her assertion that Alameda had borrowed around $3 billion as of mid-2022.
Pimbley’s insights will also address the testimonies of Nishad Singh and Adam Yedidia, offering a counterpoint to the prevailing narrative presented by the witnesses.
A Rebuttal to Witness Testimonies Against SBF
On October 6th, former FTX CTO Gary Wang took the stand as a prosecution witness, shedding light on the murky relationship between FTX and Alameda. He revealed that Alameda had enjoyed special privileges, being exempt from FTX’s liquidation engine and having the liberty to make unrestricted withdrawals, sometimes even funded by customer deposits when the trading firm faced a negative balance.
Similarly, on October 10th, Caroline Ellison’s testimony pointed fingers at Sam Bankman-Fried as the mastermind behind the alleged fraudulent activities at FTX and Alameda. The former Alameda CEO accused him of orchestrating the siphoning of $14 billion from FTX customer funds for loan repayments and investments, underscoring the gravity of financial misappropriation and investor fraud.
Former FTX Head of Engineering Nishad Singh also testified to SBF’s fund misappropriation, asserting that he had raised issues with several of Bankman-Fried’s spending decisions, including celebrity endorsements, which reached over $1 billion.
On the Flipside
- As the high-stakes trial unfolds, the destiny of Sam Bankman-Fried hangs in the balance, teetering on the strength of his defense. The potential consequence is a staggering 155 years behind bars if found guilty.
- In December 2022, Caroline Ellison, Nishad Singh, and Gary Wang entered a plea deal with the Department of Justice (DOJ).
- Former FTX developer Addam Yeddia testified against SBF, strengthening the fraud case against SBF.
Why This Matters
As the courtroom drama unfolds, the introduction of Joseph Pimbley as an expert witness carries significant weight in Sam Bankman-Fried’s defense. The trial’s outcome hinges on a delicate balance of evidence, and Pimbley’s expert insights may be a game-changer for SBF.
To discover more about SBF’s fate in the ongoing trial, read here:
SBF Trial Exposes Extent of FTX Founder’s Investor Deception
Web3 security firm gathers $33M to target malicious actors in the crypto industry. Read more:
Blockade Secures $33M To Surveil Crypto Transaction