SBF’s strategy on rebutting DOJ testimony with a financial expert
The FTX scandal has caused more implications for the crypto market than anticipated. As it stands, Sam Bankman-Fried (SBF) is still on trial for alleged mismanagement of investors’ funds. Among the recent happenings in the case are the DOJ testimony that was presented last week and the defense seeking out new strategies in trying to rebut the testimonies.
SBF has proposed financial experts as witnesses to testify on the finances of his Alameda Research and FTX crypto exchange firm. This agenda comes in to rebut testimonies presented by the United States Department of Justice (DOJ). It seems the drama around the case is still unfolding to an unexpected turn.
SBF’s rebuttal strategy -will it work?
The defense team in SBF’s court hearing suggested a witness in their defense, and this included financial experts, among them Joseph Pimbley. Pimbly is the sole proposed expert witness for the FTX defense team. Pimbley is a member of PF2, a litigation consulting firm.
The defense team proposed to call Pimbley in light of responding to testimonies made by the prosecution’s witnesses. His response will be to collaborate or refute the testimonies of Caroline Ellison, the Alameda Research CEO, and the former FXT Chief Technology Officer, Gray Wang.
The testimony reply will also respond to Nishad Singh’s testimony, the Head of Engineering at FTX. The defense conveyed this information in the court filing on Monday.
The filling explained various details concerning the rebuttal strategy the defense will employ. It described, “Pimbley will testify to his opinion, based on data extracted from FTX’s database, that:
1. Usage by Alameda Research of its line of credit fluctuated between approximately $1 billion and $3 billion between October 2021 and September of 2022 and decreased for a substantial portion of June 2022.
2. The majority of balances for non-Alameda, non-FTX users (i.e., accounts excluding Alameda’s accounts and FTX’s own accounts) are concentrated in just four coins (USD, BTC, ETH, and USDT) relative to the hundreds of coins defined within the FTX database, and more than 75% of non-Alameda, non-FTX balances arise from accounts that have spot margin enabled, spot margin lending enabled, or show futures activity.”
Ongoing events on the FTX case
Pimbley responded to the call in a disclosed statement stating he extracted data on the FTX line of credit that was used by Alameda Research. He explained his source was from the FTX Amazon Web Service database that was listed in accordance with the denominated cryptocurrency.
Joseph Pimbley also stated his findings on the court case showcasing his investigation, which consisted of diagrams and charts based on the financial inflows and outflows of the collapsed FTX firm. He also includes queries on the database information that would require deeper explanation and research to find the truth about the case.
However, Pimbley is one of seven named financial experts the defense tagged as their original pitch for witnesses presented earlier this year. However, Judge Lewis Kaplan rejected the proposal. Judge Kaplan, from the Southern District of New York, is the official overseeing the trial.
He allowed the defense to renominate four witness prospects only if they shared exclusive information and more specifics on the case in the trial during their testimony.
Considering Pimbley is the sole financial expert witness for the defense, the team has a chance of calling other experts to the stand if they provide more insights on FTX financial data.
This means Pimbley might not be the only witness called to testify. The only prospects eligible to be considered as valid witnesses are individuals with direct links to the FTX firm. Still, the court awaits the decision of Bankman-Fried’s call to testify, which might shed more light on the legal case.
The odds of SBF testifying in his trial
A criminal defendant has the right to testify during their trial, although many do not. Several weeks into Sam Bankman-Fried’s case, the FTX founder has yet to decide whether or not to testify. Since his close associates, whom many regard as insiders, have testified, several legal experts believe it will be beneficial to hear SBF’s side of the story.
While counsel may advise against it, the defendant ultimately decides whether or not to testify. Following the testimonies of his close group, Bankman-Fried may have a “human urge” to speak.
During cross-examination, the government could grill Bankman-Fried for hours, damaging his chances with the jury if things go wrong. Furthermore, prosecutors may be able to submit additional evidence that they would not be able to otherwise.
If Bankman-Fried takes the stand, the DOJ may present evidence that calls his credibility into question. Normally, prosecutors would be required to limit their evidence to items directly related to Bankman-Fried’s defense.
Read More
SBF’s strategy on rebutting DOJ testimony with a financial expert
The FTX scandal has caused more implications for the crypto market than anticipated. As it stands, Sam Bankman-Fried (SBF) is still on trial for alleged mismanagement of investors’ funds. Among the recent happenings in the case are the DOJ testimony that was presented last week and the defense seeking out new strategies in trying to rebut the testimonies.
SBF has proposed financial experts as witnesses to testify on the finances of his Alameda Research and FTX crypto exchange firm. This agenda comes in to rebut testimonies presented by the United States Department of Justice (DOJ). It seems the drama around the case is still unfolding to an unexpected turn.
SBF’s rebuttal strategy -will it work?
The defense team in SBF’s court hearing suggested a witness in their defense, and this included financial experts, among them Joseph Pimbley. Pimbly is the sole proposed expert witness for the FTX defense team. Pimbley is a member of PF2, a litigation consulting firm.
The defense team proposed to call Pimbley in light of responding to testimonies made by the prosecution’s witnesses. His response will be to collaborate or refute the testimonies of Caroline Ellison, the Alameda Research CEO, and the former FXT Chief Technology Officer, Gray Wang.
The testimony reply will also respond to Nishad Singh’s testimony, the Head of Engineering at FTX. The defense conveyed this information in the court filing on Monday.
The filling explained various details concerning the rebuttal strategy the defense will employ. It described, “Pimbley will testify to his opinion, based on data extracted from FTX’s database, that:
1. Usage by Alameda Research of its line of credit fluctuated between approximately $1 billion and $3 billion between October 2021 and September of 2022 and decreased for a substantial portion of June 2022.
2. The majority of balances for non-Alameda, non-FTX users (i.e., accounts excluding Alameda’s accounts and FTX’s own accounts) are concentrated in just four coins (USD, BTC, ETH, and USDT) relative to the hundreds of coins defined within the FTX database, and more than 75% of non-Alameda, non-FTX balances arise from accounts that have spot margin enabled, spot margin lending enabled, or show futures activity.”
Ongoing events on the FTX case
Pimbley responded to the call in a disclosed statement stating he extracted data on the FTX line of credit that was used by Alameda Research. He explained his source was from the FTX Amazon Web Service database that was listed in accordance with the denominated cryptocurrency.
Joseph Pimbley also stated his findings on the court case showcasing his investigation, which consisted of diagrams and charts based on the financial inflows and outflows of the collapsed FTX firm. He also includes queries on the database information that would require deeper explanation and research to find the truth about the case.
However, Pimbley is one of seven named financial experts the defense tagged as their original pitch for witnesses presented earlier this year. However, Judge Lewis Kaplan rejected the proposal. Judge Kaplan, from the Southern District of New York, is the official overseeing the trial.
He allowed the defense to renominate four witness prospects only if they shared exclusive information and more specifics on the case in the trial during their testimony.
Considering Pimbley is the sole financial expert witness for the defense, the team has a chance of calling other experts to the stand if they provide more insights on FTX financial data.
This means Pimbley might not be the only witness called to testify. The only prospects eligible to be considered as valid witnesses are individuals with direct links to the FTX firm. Still, the court awaits the decision of Bankman-Fried’s call to testify, which might shed more light on the legal case.
The odds of SBF testifying in his trial
A criminal defendant has the right to testify during their trial, although many do not. Several weeks into Sam Bankman-Fried’s case, the FTX founder has yet to decide whether or not to testify. Since his close associates, whom many regard as insiders, have testified, several legal experts believe it will be beneficial to hear SBF’s side of the story.
While counsel may advise against it, the defendant ultimately decides whether or not to testify. Following the testimonies of his close group, Bankman-Fried may have a “human urge” to speak.
During cross-examination, the government could grill Bankman-Fried for hours, damaging his chances with the jury if things go wrong. Furthermore, prosecutors may be able to submit additional evidence that they would not be able to otherwise.
If Bankman-Fried takes the stand, the DOJ may present evidence that calls his credibility into question. Normally, prosecutors would be required to limit their evidence to items directly related to Bankman-Fried’s defense.
Read More