As the criminal charges of the founder of now-defunct crypto exchange FTX Sam-Bankman Fried near the end, the defense team is seeking expert involvement in the case. The deepening of the Bankman Fried legal charges has forced the defense team to engage an expert to rebut prosecutors testimonies.
On Monday, October 23, the SBF defense team appointed Joseph Pimbley as the financial expert in the ongoing trials. The report revealed that Pimbley will act as a witness in the SBF’s ongoing trials. The court has scheduled October 26 to resume the trial against the 31-year-old crypto investor.
Sam Bankman-Fried Legal Charges Heightens
Pimbley will be mandated to respond to the recent testimonies from FTX’s former employees, including former Alameda chief executive Caroline Ellison, lead developer Adma Yedidia, Gary Wand, and Nishad Singh. A review of the previous testimonies from Bankman Fried’s inner circle demonstrated that the crypto mogul was the mastermind of the suspicious project that resulted in losing customers’ funds.
According to the Monday filing, Pimbley is expected to offer his opinion concerning the troubled crypto mogul’s operation and the FTX’s operation. In an earlier report, Pimbley confirmed to have extracted data from FTX and Alameda financial statements.
During the data extraction, Pimbley computed the amount Alameda used in line with its credits. The expert also leverages his vast experience in financial matters to assess the balances in all accounts linked to FTX.
In the primary data extraction stages, Pimbley analyzed the FTX’s data available on Amazon Web Services database and other software. After extracting and gathering substantial evidence, Pimbley shared the information with his database. He confirmed adopting different data representation designs, including charts, diagrams, and queries for seamless interpretation of data.
SBF Defense Team to Engage an Expert as a Witness
Pimbley will present his data in two main categories in the court hearing. Firstly, Pimbley will provide a detailed summary of the Alameda Research cash inflow and outflow.
Pimbley noted that the use of Alameda line of credit declined from $1 billion in October 2021 to $3 billion as of September 2022. The financial expert realized that the gaps in Alameda’s credits gradually widened as of June 2022.
Additionally, Pimbley will review the balances of non-Alameda and non-FTX user accounts. The expert noted that FTX customers were more interested in USD Coin (USDC), Bitcoin (BTC), Ether (ETH), and Tether (USDT).Pimbley observed from the FTX database there were a hundred coins listed on the platform.
He added that 75% of the balances were extracted from the non-Alameda, and non-FTX accounts and exhibited unique features such as the spot margin and spot margin lending. Also, Pimbley noted that the accounts mentioned above had active future activities.
Court to Resume SBF Criminal Trials
The Monday court filing demonstrated that Pimbley will not be the only witness to testify on the October 26 trials. The court stated that other witnesses would be allowed to testify. However, it remains unclear whether the SBF defense team will testify on the set day.
A review of the defendant’s constitutional rights revealed that Bankman -Fried has the right to testify in a court of law. Even though Bankman Fried has not announced plans to testify, the government prosecutor plans to increase the number of witnesses.
In the recent court hearing, the prosecutors vowed to work around the clock until October 26. Guided by the constitutional legal obligation of protecting the innocent and convicting the guilty, the SBF prosecutors plan to involve two witnesses.
The prosecutors will engage an FTX customer and investors to share their other side of the story. The two witnesses will give their opinions to fill the gaps from the previous testimonies.
They argued that the imminent testimonies in the SBF case will shared within the shortest time possible.However, depending on the broad and complex nature of the SBF criminal trials, the prosecutors had abandon plans to engage an official from the Department of Justice (DOJ).
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