Expert Witness to Counter Former Executives' Claims on FTX-Alameda Financial Links
Summary:
The legal team of Sam Bankman-Fried plans to introduce an expert witness to counter previous testimonies about the financial relationship between FTX and Alameda Research. The chosen witness, Joseph Pimbley from PF2 Securities, will testify about Alameda's fluctuating credit line with FTX based on FTX's database data. He will also offer contextual information about non-FTX and non-Alameda client balances and counter claims about Alameda's FTX credit line made by former FTX executives. Pimbley's remuneration is $720 per hour plus expenses, but he affirms he has no financial stake in the case.
The legal team of Sam Bankman-Fried are preparing to put forth an expert witness to counter previous testimonies, including that of former Alameda Research CEO Caroline Ellison, about the financial links between FTX and the trading firm. In an official letter addressed to Lewis Kaplan, a New York district judge, on October 23, Bankman-Fried's lawyers presented Joseph Pimbley of litigation consultancy, PF2 Securities, as their choice of witness on behalf of ex-FTX CEO. The attorneys suggest that Pimbley will give evidence—formed from FTX's database data—that Alameda's credit line with FTX “swung between roughly $1 billion and $3 billion” from October 2021 to September 2022 and decreased in June 2022, ultimately providing a clear timeline for the credit line. Additionally, Pimbley will state that the majority of balances for non-FTX and non-Alameda clients are predominantly in U.S. dollars, Bitcoin (BTC), Ether (ETH), and Tether (USDT) and that over three-quarters of these non-FTX and Alameda client balances “originate from accounts that enable spot margin, spot margin lending, or exhibit futures activity". This could provide essential context for testimonies given by former FTX leaders. Furthermore, Pimbley plans to refute Ellison's testament that Alameda held “an indeterminate line of credit with FTX” and the claim made by co-founder of FTX, Gary Wang, where he suggested the firm had borrowed “about $3 billion” from the credit line. Details contained in Pimbley’s 54-page report include charts, spreadsheet extracts, diagrams and database queries obtained from FTX’s Amazon Web Services database that all relate to FTX’s credit line with Alameda in the period October 2021 to November 2022. Pimbley's remuneration stands at $720 per hour plus expenses, but he clarified he has “no financial stake in this case’s outcome.” Earlier, Judge Kaplan had barred seven expert witnesses selected by Bankman-Fried's legal team from providing testimony, but in this case, Pimbley will be permitted on condition that his testimony responds to government witness testimonies and clarifies their allegations.
Published At
10/24/2023 5:44:48 AM
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