Sam Bankman-Fried’s Lawyer Drops The Case ! Here’s Why

FTX founder Sam Bankman-Fried facing increasing legal challenges over the FTX collapse may have jeopardised his defence by speaking publicly in recent days. 

Why SBF’s Lawyer Back out From The Case?

As per Attorneys, SBF was engaged in disruptive tweets and conversations with reporters disparaging the government regulators. Such statements will likely make life more difficult for the defense lawyers seeking to manage fallout from the exchange’s demise and navigate multiple federal investigations.

US lawyers claim that he is disrupting their efforts through “incessant and disruptive tweeting.” Paul Weiss said Friday it has stopped representing Sam Bankman-Fried, citing conflicts of interest.

“We informed Mr. Bankman-Fried several days ago, after the filing of the FTX bankruptcy, that conflicts have arisen that precluded us from representing him,” Paul Weiss counsel Martin Flumenbaum said in a statement. Although Flumenbaum declined to describe the conflicts. 

Martin Flumenbaum is currently defending Christian Larsen, the founder and chair of crypto firm Labs Inc, in a high-profile lawsuit filed by the SEC. 

“There’s this old saying that a lawyer who represents himself has a fool for a client. The reverse is also true. An individual who is the subject of an investigation and tries to defend themselves in the court of public opinion has a fool for a lawyer,” said Justin Danilewitz, a white-collar defense lawyer at law firm Saul Ewing Arnstein & Lehr.

“The basic question is who controls the story,” said Stephen Gillers, a law professor at New York University and an expert on legal ethics. “From the lawyer’s point of view, once he or she is hired, it’s the lawyer who controls the story as far as public consumption goes.”

Is SBF Hiring New Lawyer?

According to a Semafor report, Bankman-Fried has added David Mills, a law professor at Stanford University, and Gregory Joseph, a criminal defence attorney with the New York firm Joseph Hage Aaronson, to his legal team. Bankman-Fried did not respond to inquiries regarding his legal team this week. It is worth norting that Bankman-parents Fried’s are both Stanford Law School professors.

What Next For FTX and SBF ?

ftx exchange ftx exchange - Centralised Exchange founder is currently under investigation from several angles. Authorities are looking into possible instances of FTX misusing client funds. On Friday, a House panel wrote to Bankman-Fried and Ray to submit documents  pertaining to the bankruptcy of the exchange.