The ongoing legal proceedings surrounding the former CEO of FTX Sam Bankman-Fried (SBF) took a new turn when U.S. District Judge Ronnie Abrams withdrew his involvement in the case. The United States District Court for the Southern District of New York bailed out of the FTX case after revealing that a law firm, which employs Abrams' husband as a partner, had advised the cryptocurrency exchange in 2021.
On a December 23 presentationJudge Abrams revealed that her husband, Greg Andres, is a partner at Davis Polk & Wardwell, a law firm where he has worked since June 2019. Additionally, it was noted that the law firm had advised FTX in 2021.
Abrams also stated that the law firm represented parties that may be adverse to FTX and SBF in other legal proceedings. โMy husband has not been involved in any of these representations,โ she clarified while stating that the issues are unknown to the District Court due to confidentiality.
"However, to avoid any possible conflict, or the appearance of one, the Court releases itself from the present action."
Judge Abrams' removal from the FTX case eradicates any conflict of interest in the FTX case, considering the fact that Andres continues to serve as a partner in the law firm of Davis Polk & Wardwell.
Andrรฉs previously worked as an Assistant United States Attorney for the Eastern District of New York, where he specifically oversaw criminal fraud prosecutions and foreign bribery investigations.
On December 22, SBF was released on $250 million bail based on a written promise to appear at future court appearances and not engage in illegal activity.
However, the bond was surprising considering that SBF previously claimed to possess less than $100,000 amid the bankruptcy filing.
It's funny how SBF can post the $250 million bail shortly after saying he only had $100k.
So he's probably using stolen customer deposits to stay out of jail.
โBenjamin Cowen (@intocryptoverse) December 22, 2022
The personal recognition bond allowed Bankman-Fried to get out of prison without making any actual payment. The bond was approved against collateral property owned by her parents, a relative and a family friend.
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