US DOJ to subpoena FTX customers and partners for trial
The US Department of Justice (DOJ) has revealed an extensive list of witnesses in the Sam Bankman-Fried (SBF) trial involving FTX clients. This comes in the wake of the US Securities and Exchange Commission (SEC) bankruptcy auditor Prager Metis.
On September 30, the DOJ said its witnesses included former FTX clients and other key stakeholders in the defunct firm.
DOJ witness list on SBF
The DOJ intends to subpoena both retail and institutional investors with high net worth in the FTX platform. These testimonials demonstrate their expectations and understanding of the FTX asset management system.
“[They] They testify. [held their assets on FTX] You understand and understand that FTX will treat their assets separately from the Company, will not transfer client assets to Alameda Research, and will not use their assets for FTX's or Alameda's personal expenses.
Due to logistical difficulties, the DOJ requested the court's permission for one of its clients to testify remotely. This Ukrainian client lost “a large portion of his life savings” on FTX.
The DOJ's witness list includes some former FTX and Alameda executives who have previously pleaded guilty. This team includes FTX CTO Gary Wang, former FTX Head of Engineering Nishad Singh, and former Alameda Research CEO Carolyn Ellison.
SEC Fees FTX Auditor
Separately, the US Securities and Exchange Commission (SEC) has initiated legal proceedings against FTX auditor Praeger Metis.
According to the financial regulator, Praeger Mettis violated auditor independence rules by aiding and abetting its clients in violating federal securities laws. The accounting firm “improperly included compensation provisions for more than 200 audits, reviews and examinations.”
In 2021, Praeger Metis audited both FTX US and FTX. This move was seen as a strategic effort to enhance the credibility of the accounting firm's work.
The SBF lawyer accused the US government of biased jury questions.
Meanwhile, SBF's lawyer expressed his displeasure with the government's questions to the judges, stating that they are presented in a biased manner and may bias the judges.
In a Sept. 29 letter, the attorney accused the government of using inappropriate language to describe his client, referring to him as a “fraudster” rather than a “fraudster” that he believes could unfairly influence the jury's perception.
Therefore, counsel requests that SBF's motion for jurisdiction be dismissed first.
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