Bankman-Fried has retained Mark S. Cohen, of Cohen & Gresser, his spokesperson Mark Botnick stated in an emailed assertion. Cohen couldn’t be reached for remark.
Ellison, who ran buying and selling agency Alameda Research, has employed Washington-based legislation agency Wilmer Cutler Pickering Hale and Dorr to signify her, a supply accustomed to the matter informed Reuters. Neither Ellison nor spokespeople for the agency responded to requests for remark.
Regulators across the globe, together with within the Bahamas the place FTX is predicated and within the United States, are investigating the function of FTX’s high executives together with Bankman-Fried within the agency’s gorgeous collapse, Reuters has beforehand reported.
The crypto trade filed for chapter final month after a liquidity disaster that noticed at the very least $1 billion of buyer funds vanish.
Prosecutors and regulators haven’t charged Bankman-Fried or Ellison with against the law. They face civil lawsuits from FTX clients.
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David Mills, a professor at Stanford Law School, is consulting on the matter for Bankman-Fried, Botnick stated. Mills didn’t reply to requests for remark. Semafor beforehand reported Mills’ advisory work for Bankman-Fried.
Cohen, a former assistant United States lawyer for the Eastern District of New York, just lately defended Ghislaine Maxwell in her intercourse trafficking trial.
Bankman-Fried had beforehand employed Martin Flumenbaum of legislation agency Paul, Weiss, Rifkind, Wharton & Garrison, however the legislation agency stated final month it was now not representing him attributable to conflicts.
A widely-followed Twitter account beforehand named WilmerHale as Ellison’s counsel.
In latest weeks, US authorities have sought info from traders and potential traders in FTX, in response to two sources with information of the requests.
Federal prosecutors in New York are asking for particulars on any communications such corporations have had with the crypto agency and its executives, together with Bankman-Fried, the sources stated. Bloomberg beforehand reported the knowledge requests.
The Securities and Exchange Commission has been asking for comparable info from traders as effectively, one of many sources stated.
Those sources and attorneys, talking on situation of anonymity, have stated that US authorities are probably on the lookout for any proof of fabric misrepresentations of data to traders.
Spokespeople for the Manhattan US lawyer’s workplace and the SEC declined to touch upon the knowledge request.
FTX secretly transferred buyer funds to its affiliate Alameda Research to fill a shortfall on the crypto buying and selling agency, Reuters has beforehand reported.
The Wall Street Journal has beforehand reported that Ellison and senior FTX officers knew the crypto trade had dipped into its buyer funds to assist Alameda meet liabilities.
Speaking by way of video hyperlink on the New York Times’ Dealbook Summit with Andrew Ross Sorkin on Wednesday, Bankman-Fried stated he didn’t knowingly commingle buyer funds on FTX with funds at his proprietary buying and selling agency, Alameda Research.
“I didn’t ever try to commit fraud,” Bankman-Fried stated, including that he doesn’t assume he has any felony legal responsibility.