U.S. prosecutors say there may be a conflict of interest in the fact that Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, and Alex Mashinsky, the CEO of the bankrupt cryptocurrency lending platform, have the same lawyer. claimed that it could be done.
Moreover, Celsius deepens the entanglement of the two events by defining himself as a victim of the Alameda study.
SBF and Alex Mashinsky share an attorney
In court filings, U.S. prosecutors declared that attorneys Marc Mukasey and Torrey Young represent both Bankman-Fried and Mashinsky, which could create a conflict of interest.
“Mr. Mukasey and Ms. Young’s representation of defendants Bankman-Fried and Mashinsky in separate cases creates a potential conflict of interest. However, this potential conflict of interest may be waived.”
This is mainly due to the fact that there is color between the two companies they each founded. Mashinsky blamed the Celsius decline on “actions taken by Alameda Research,” including at times CEL’s price manipulation.
Read more: Who is infamous FTX co-founder Sam Bankman-Fried (SBF)?
Moreover, prosecutors argue that despite having access to both companies’ documents, sharing of information with both parties is limited, which could lead to bias.
“Third, in this case, the defense attorney was granted access to millions of records under the protective order, which limits the defense attorney’s use and disclosure of that information. That also creates the possibility of conflict.”
Additionally, before Celsius went bankrupt, Bankman-Fried discussed Celsius’s management and its financial condition. There has been talk of FTX buying Chelsea and Bankman-Fried possibly replacing Mashinsky as CEO.
Prosecution, SBF and Masinsky situation ‘not serious’
Prosecutors argue that Bankman-Fried’s involvement during this period could have provided relevant information for Mashinsky’s defense. But the lawyer was not authorized to share it with Mashinsky.
However, the prosecution argued, “It is not serious, but it can be alleviated by adding another defense attorney.”
Read more: FTX Collapse Explained: How Did Sam Bankman-Fried’s Empire Fall?
Bankman-Fried’s parents recently claimed they had no knowledge of the illegal activities of their son-swapping. This was an effort to have the case against them dismissed.
On January 17, BeInCrypto reported that Bankman-Fried’s parents’ attorney declared that he had never held a director or officer position at the now-defunct cryptocurrency exchange FTX or Alameda Research.
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