Sam Bankman-Fried Chooses New Lawyers Amid Conflict Concerns for Appeal

Sam Bankman-Fried, the former FTX CEO, has opted for new attorneys for his appeal despite potential conflict concerns, as reported by various media outlets. After separating from his trial legal team, he announced plans to engage Marc Mukasey and Torrey Young, who also represent Alex Mashinsky, the ex-CEO of Celsius. In a recent court appearance in Manhattan, Bankman-Fried, dressed in prison attire, confirmed his choice of Mukasey and Young, even though they serve Mashinsky as well. This decision follows a request from U.S. prosecutors for a hearing on possible conflicts of interest, given the attorneys' dual representation.

Prosecutors have highlighted a conflict risk because of the financial interactions between Alameda Research, linked to FTX, and Celsius. Both companies have declared bankruptcy following financial fails. Bankman-Fried intends to argue that Celsius was not defrauded, a stance that could conflict with Mashinsky's potential claims. He has discussed these conflict issues with Alexandra Shapiro, who is part of his appeal team.

Experts, including Ira Lee Sorkin, Bernie Madoff's former lawyer, note that it's common for new, appeal-experienced lawyers to take over post-trial. Braden Perry, a partner at Kennyhertz Perry, pointed out the ethical challenges in such dual representations, especially in complex white-collar cases. Bankman-Fried remains under arrest following his conviction on fraud charges, while Mashinsky is set for a fraud trial in January 2025. Mashinsky, too,