Sam Bankman-Fried, the founder and CEO of the cryptocurrency exchange FTX, seeks expert to counter testimony. Currently, Sam is facing multiple criminal charges which the Department of Justice has filed following the collapse of the FTX. It all started when CoinDesk apparently published a report that questioned the health of Alameda Research, FTX’s sibling company.
Joseph Pimbley’s Testimony
In an interesting turn of events, Sam Bankman-Fried seeks an expert to counter the testimony. Attorneys of Sam have decided to bring Joseph Pimbley from PF2 Securities, who intends to testify on his behalf. A letter has been submitted to the Hon’ble Judge of New York, which elucidates that Joseph is willing to testify on the credit information between FTX and Alameda.
Statements from the key witness will further disclose that the majority of balances held by non-FTX and non-Alameda users on the exchange are denominated In the most commonly used currencies like US dollars, Bitcoin, Ether, and Tether. Moreover, Joseph wishes to emphasize the trading behavior and preferences of users on the exchange. Approximately 75% of non-FTX and non-Alameda users’ balances originate from accounts with spot margin enabled, spot margin lending enabled, or show future activity.
Sam Bankman-Fried seeks an expert to counter the testimony of Gary Wang (FTX Co-founder) and Caroline Ellison (Ex Ceo at Alameda). Wang’s testimony that Alameda had allegedly borrowed around $3 billion from the credit line shall be rebutted by Joseph. He seeks an expert to counter the testimony of Nishad Singh (FTX Engineering director) and Adam Yedidia (ex-employee at FTX) as well. It is expected that such testimonies and rebuttals will showcase the complexities surrounding cryptocurrency exchanges.
Expert Witness Disclosure
Joseph has submitted his expert witness disclosure to the Hon’ble Court of the Southern District of New York. To give support to his oral statements, he has extracted data that shows the amount of LOC that was used by Alameda during the time period in concern. Joseph has already submitted various extracts of the database in this regard. These calculations aim to provide a detailed snapshot of the financial landscape within FTX accounts.
Some of the data that he has extracted from the balances table of the FTX’s Amazon Web Services are-
- The sum of the fair values, expressed in US dollars, of balances across all accounts, excluding those linked to Alameda and FTX, amounts to $5,842,162,373.
- This section of the sum in (a) identifies accounts that have spot_margin_enabled set to TRUE, spot_margin_lending_enabled set to TRUE, or exhibit futures activity, as indicated by non-zero values in the net_size field within the “positions” table. The total value within this category is $4,539,524,208. A pie chart representation of both (a) and (b) results has been submitted.
- The comprehensive sum of fair values expressed in US dollars across all accounts, excluding those of Alameda and FTX, and considering all available “coins,” is $8,943,675,162.
- Within the total value derived in (c), this section identifies accounts that have spot_margin_enabled set to TRUE, spot_margin_lending_enabled set to TRUE, or exhibit futures activity with non-zero net_size values in the “positions” table. The resulting sum for this category is $6,910,615,317.
What’s in it for Pimbley?
As per the disclosure, FTX shall award Joseph with $720 an hour plus any additional expenses for his service in this case. However, Joseph has claimed that he has no financial interest in the outcome of this case. Through his disclosure, he has further declared that his opinions and statements are not based on the compensation provided to him.
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