Lawyers for Sam Bankman-Fried want to ask FTX co-founder Gary Wang questions about attorneys' involvement in loans issued to him by Alameda Research.
During the trial last week, prosecutors asked Wang about a "series of personal loans worth approximately $200-$300 million that he received from Alameda to fund venture investments by FTX and to fund his purchase of a house in the Bahamas," Bankman-Fried's lawyers said in a filing from Monday night. Wang was a longtime friend of Bankman-Fried and also was the co-founder of sister trading-firm Alameda Research.
"Mr. Wang's understanding that these were actual loans - structured by lawyers and memorialized in formal promissory notes that imposed real interest payment obligations - is relevant to rebut the inference that these were simply sham loans directed by Mr. Bankman-Fried to conceal the source of the funds,”" his lawyers said, asking for approval from the court.
Bankman-Fried's lawyers want to specifically ask Wang about which attorneys were involved in the loans, what documents they prepared and whether he had "any concerns about the loans at the time he signed them."
The relationship between Alameda and FTX has been a crucial part of the case and the trial so far. Wang testified last week that, under Bankman-Fried's direction, Alameda Research was given the ability to withdraw funds even if its account had a negative balance. Wang noted that the funds, in that circumstance, would come from FTX customer deposits.
Wang's testimony is expected to continue into Tuesday and be followed by former Alameda Research CEO Caroline Ellison later in the day.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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