Sam Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, made his first appearance since his fraud conviction on Wednesday and confirmed he wanted to stay with new lawyers despite a potential conflict of interest.
When he returned to court, he had noticeably lost some weight and his black hair had begun to grow again – similar to the first photos seen of him in prison – as he was led into court with his ankles cuffed under his prison issued colorless pants and shirt.
In response to the judge’s questions, he acknowledged that he was taking antidepressants and medications to keep his attention focused.
He would sometimes answer questions nonchalantly, saying “no” and “yes” while tapping his right foot quickly on the floor under the table where he sat.
Bankman-Fried, 31, hired defense attorneys Marc Mukasey and Torrey Young in January to represent him at his March 28 sentencing, which could see him serve up to 100 years in prison.
Sam Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, made his first appearance since his fraud conviction on Wednesday and confirmed he wanted to stay with new lawyers despite a potential conflict of interest. Pictured: Bankman-Fried in prison on December 17
Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, is sworn in as he appears in court for the first time since his November fraud conviction at a New York courthouse in this sketch
He faces decades in prison after a Manhattan federal court jury found the former billionaire guilty of stealing billions of dollars from FTX clients.
During a brief hearing before U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried said he had no problem hiring Mukasey and Young even though they also represent the founder of bankrupt cryptocurrency lender Celsius Networks, Alex Mashinsky , who has pleaded not guilty to separate fraud charges. .
Kaplan asked Bankman-Fried, who was wearing a tan prison shirt and chains around his ankles, to describe the potential conflict in his own words.
“At a high level they also represent Alex Mashinsky,” said a clean-shaven Bankman-Fried, whose curly hair has grown longer since his month-long trial last year.
Bankman-Fried described Celsius as “a company with which the companies I led had business interactions.”
Mukasey, a former federal prosecutor in Manhattan and the son of former U.S. Attorney General Michael Mukasey, was once part of former President Donald Trump’s personal legal team.
He also represented Nikola electric and hydrogen-powered truck founder Trevor Milton, who was sentenced last year to four years after being convicted of fraud for lying to investors about the company’s technology — well short of the 11 years the prosecutors had proposed.
Bankman-Fried told Kaplan that he had consulted with attorneys Mark Cohen and Christian Everdell, who represented him at his trial, about Mukasey’s potential conflict.
When he returned to court, he had noticeably lost some weight and his black hair was growing back. In this court sketch he is depicted sitting with his attorneys Torrey Young (drawn at left) and Marc Mukasey
In response to the judge’s questions, he acknowledged that he was taking antidepressants and medications to keep his attention focused
He said he also discussed it with Alexandra Shapiro, another attorney who will handle his possible appeal.
Mukasey said Cohen and Everdell will soon seek Kaplan’s permission to withdraw from the case.
In a Feb. 6 court filing, prosecutors in Bankman-Fried’s case said his hedge fund Alameda Research used stolen FTX client funds to repay money it borrowed from Celsius.
Prosecutors said Bankman-Fried and Mashinsky may have different views on whether Celsius was defrauded and is entitled to a refund.
Bankman-Fried, who has been held at the Metropolitan Detention Center in Brooklyn since August 2023, said Wednesday that he is taking antidepressants and Adderall, which is used to treat attention deficit hyperactivity disorder.
At his trial in October, Bankman-Fried’s attorneys said he needed a higher dose of Adderall than he had been given each morning in jail to concentrate.
Mashinsky, 59, waived his right to an attorney during a hearing Tuesday before U.S. District Judge John Koeltl, without any potential conflict.
The two attorneys said at that hearing that they could fairly represent both Bankman-Fried and Mashinsky.
Bankman-Fried, 31, hired attorneys Marc Mukasey (pictured) and Torrey Young in January to represent him at his March 28 sentencing, which could see him serve up to 100 years in prison.
During a brief hearing before U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried said he had no problem hiring Mukasey and Young even though they also represent the founder of bankrupt cryptocurrency lender Celsius Networks, Alex Mashinsky (pictured left), who has pleaded not guilty. to separate fraud charges
Mashinsky is out on bail. His trial on charges of artificially inflating the value of the company’s internal crypto token and making $42 million from the sale of its assets is scheduled for January 28, 2025.
Bankman-Fried, who was convicted last year of stealing from customers of his now-bankrupt FTX cryptocurrency exchange, has been photographed in prison for the first time.
The former billionaire, 31, is seen in the newly surfaced photo taken at New York’s Metropolitan Detention Center, where he is being held awaiting sentencing, for which he could face up to 115 years in prison. He will be sentenced next month.
The photo, believed to have been taken on December 17, shows Bankman-Fried with a beard as he stands next to five other inmates.
Crypto crime reporter Tiffany Fong originally got the image and spoke to an inmate pictured next to Bankman-Fried.
The inmate, known as G Lock, described Bankman-Fried as ‘weird as f***’ but considered him a ‘good guy’.
FTX founder Sam Bankman-Fried leaves Manhattan federal court on June 15, 2023 in New York
G Lock, a former member of the Blood gang, said: ‘Sam had a belly, he ate well. (Now) he’s skinny as a toothpick.
‘He doesn’t take a shower, he doesn’t do anything. He hasn’t betrayed anyone, Sam is a gangster.
‘Sam is more gangster than Tekashi69, Sam Bankman stood on all ten toes. Tekashi rattled.
‘He’s a good guy, he really is. As strange as it is, it can be strange. But he’s a good guy.’ It is not clear what G Lock was in prison for.
Fong added, “He’s obviously lost some weight and I heard he doesn’t shower much.
“He’s not as clean-shaven as he used to be, but he’s clearly going through a lot now.”
