The latest crypto news is that the judge assigned to the case against former FTX CEO Sam Bankman-Fried has recused herself from the case.
According to court documents, US District Judge Ronnie Abrams had stepped down “to avoid any possible case of conflict of interest, or the appearance of one.”
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Recusing herself, Abrams noted the decision relates to the fact that her husband Greg Andres is a partner at Davis Polk & Wardwell LLP, a law firm that previously advised FTX. The law firm also represented parties likely to be adverse to the crypto exchange and Bankman-Fried in other proceedings, Abrams noted.
“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.”
The FTX saga
Bankman-Fried is out on a $250 million bail following his extradition to the United States.
It’s been a few dramatic days too – with former FTX and Alameda Research executives Gary Wang and Caroline Ellison reportedly collaborating with federal prosecutors after pleading guilty to multiple charges. The two have also been charged by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Former Alameda CEO Ellison also told the court earlier this week that Bankman-Fried’s company did divert and misuse customer funds. According to her, she and SBF agreed to hide from investors, lenders and customers the fact that Alameda could borrow billions of dollars from FTX.
The exchange imploded in late October, along with over $10 billion secretly sent to Alameda.