Judge In SBF’s Case Withdrawal Because Her Husband’s Company Is Involved In FTX

Key Points:

• The trial of former FTX boss Sam Bankman-Fried (SBF) became increasingly involved as US District Judge Ronnie Abrams announced his withdrawal from the case.
• Abrams’ husband, Greg D. Andres, is a partner at the law firm Davis Polk & Wardwell, which will advise FTX in 2021.
• Now, another judge will be appointed to take over the case.

Late Friday, the judge overseeing Sam Bankman-Fried’s (SBF) high-profile criminal prosecution withdrew from the case, citing a potential conflict of interest resulting from the fact that her husband’s law company had previously provided advice to FTX, SBF’s now-defunct cryptocurrency exchange.

US District Judge Ronnie Abrams has resigned from the SBF lawsuit due to a conflict of interest. It appears that Abrams’ spouse is a partner at a law company that provided legal counsel to the cryptocurrency exchange FTX.

According to Abrams’ order, Greg D. Andres, a partner at the legal firm Davis Polk & Wardwell, advised FTX in 2021. Andres did not individually advise FTX, but Abrams made the decision to withdraw from the lawsuit to avoid any potential conflict or the perception of one.

The law firm Davis Polk & Wardwell LLP represented parties that might be hostile to FTX and SBF in other processes, according to Abrams’ disclosure in the decision. She clarified further:

“My husband has had no involvement in any of these representations. These matters are confidential and their substance is unknown to the court. Nonetheless, to avoid any possible conflict, or the appearance of one, the court hereby recuses itself from this action.”

It will now be necessary to choose a new judge from the Southern District of New York to preside over SBF’s trial. There is currently no timetable for when that decision will be made.

In these situations, judges are ordinarily chosen at random to preside over cases and are only disqualified if a potential conflict of interest arises.

As Coincu reported, Caroline Ellison, former Alameda Research CEO, admitted guilt on seven counts, including conspiracy to commit wire fraud against FTX customers, wire fraud against FTX customers, conspiracy to commit wire fraud against Alameda lenders, and wire fraud against Alameda lenders. She testified in federal court in New York that she knew she was acting improperly when she knowingly misled lenders about how much the company had been borrowing from the FTX.

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Harold

Coincu News