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As a securities litigator for over 30 years, I’ve cross-examined a bunch of conmen and fraudsters. Most of my circumstances have been concentrated within the monetary providers discipline the place I represented Wall Avenue, securities brokerage corporations, business banks and nationwide inventory and derivatives exchanges – in different phrases, conventional finance.
Beginning in 2017, I pivoted my agency towards representing international and home crypto exchanges, in addition to a bunch of startup enterprises utilizing blockchain know-how to disrupt conventional monetary services.
James A. Murphy was the founder and chairman of legislation agency Murphy & McGonigle.
After I heard that Andrew Ross Sorkin was planning to interview FTX founder Sam Bankman-Fried (as a part of the New York Occasions’ DealBook Summit, scheduled earlier than the Bahamian-based crypto trade as soon as price $32 billion imploded), I reflexively went to my pc and typed up the primary 10 questions that I might ask SBF, if given the possibility.
See additionally: Let’s Discuss In regards to the New York Occasions’ ‘Puff Piece’
Clearly, if we have been going to court docket, I might have a top level view with tons of of questions and observe up factors. Quickly sufficient, Bankman-Fried will doubtless face a decide somewhat than a Occasions’ columnist. However as long as he continues to disregard his legal professionals’ ideas about not talking publicly, it’s price asking him powerful questions.
The ‘Unique Sin’
Sam, the FTX Phrases of Service state very clearly that the property prospects deposit at FTX belong to the purchasers – to not FTX.
You do understand it was unlawful so that you can misappropriate property out of your prospects’ accounts, proper?
Doubtlessly responsible confederates
Who at FTX or Alameda knew you have been transferring these buyer funds to Alameda Analysis [a hedge fund Bankman-Fried co-founded prior to FTX]?
The brand new FTX CEO, John J. Ray, III, has said that you simply used “particular software program to hide the misuse of buyer funds.”
Who helped you try this?
Present me the cash
The New York Occasions has reported that $515 million was “suspiciously transferred” from FTX wallets after the chapter submitting.
Are you aware the place that cash is likely to be?
Are there any FTX property hidden anyplace around the globe, or in chilly storage wallets, that the present administration of FTX is likely to be unaware of?
One thing fishy within the Bahamas
The Bahamian authorities have admitted they ordered the switch of sure FTX property to wallets below their management after the U.S. chapter was filed.
Did you assist the Bahamian authorities switch FTX property?
See additionally: FTX Hack or Inside Job? Blockchain Specialists Look at Clues
Main clawbacks
You personally borrowed $1 billion from Alameda. And one in all your corporations, Paper Hen, Inc., borrowed $2.3 billion from an Alameda affiliate.
That makes a complete of $3.3 billion you borrowed.
The place is all that cash proper now?
Will you come back these property to the chapter administrator instantly?
Can cash purchase you’re keen on? – From the media
Which information organizations have you ever given cash to via “grants,” “donations,” “investments” or some other means?
FTX US – not useless but?
On Nov. 15 (4 days after the chapter submitting), you tweeted that FTX US had adequate property to repay all its prospects.
Was that assertion true?
If that’s the case, why was FTX US positioned into chapter 11?
The opposite funding: political capital
You will have been an unlimited contributor to Democratic candidates within the U.S., and also you even spoke of presumably spending $1 billion to elect a Democrat as president in 2024.
What number of visits have you ever had with officers on the White Home, members of Congress and Securities and Change Commissioner Gary Gensler? And what did you talk about with them?
Maintaining secrets and techniques
The FTX chapter legal professionals are preventing very laborious to maintain the names of FTX prospects secret.
Have been any FTX accounts utilized by international or home political figures, “wealthy and well-known” individuals, oligarchs, drug cartels, terrorist teams or repressive regimes to cover their property or have interaction in cash laundering?
Homeward sure?
I’m certain you perceive that an unlimited variety of FTX prospects have been badly harm by your conduct.
Will you come back to the U.S. voluntarily to cooperate with the prison investigations of your function within the collapse of FTX?
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