Judge withdraws from FTX case citing conflict of interest

Crypto Regulation
Judge withdraws from FTX case citing conflict of interest

Judge Ronnie Abrams steps away from prosecuting the crypto mogul Sam Bankman-Fried, as her husband had a connection with the ill-fated crypto exchange FTX.

Abrams wrote in a filing that she might need to be more neutral in the FTX case since her husband, Greg Andres, is a partner at Davis Pork & Wardwell. This firm was hired as an FTX advisor in 2021. Additionally, the law company currently represents parties that may oppose FTX and Bankman-Fried, making matters worse.

“My husband has had no involvement in any of these representations. Nonetheless, to avoid any possible conflict, or the appearance of one, the court hereby recuses itself from this action.”

Ronnie Abrams, a former prosecutor on the FTX case

Sam Bankman-Fried was released on a $250 million bond after being extradited to the US. SBF is facing about eight counts of felonies for committing and conspiring to defraud FTX customers and money lenders. He is also on the microscope for possible money laundering, bank rules violations, and defrauding the US. 

His case has been going on for the past two weeks, with significant details backed by confessions and data from the solvency and bankruptcy team heading the exchange. It has also triggered some landmarking reflexes from the crypto space, like Proof of Reserves and the need for transparency in the operations of crypto platforms.

Although the FTX collapse has affected the crypto space greatly by exposing some of its rot to the regulators and causing massive losses, it is also an eye-opener. As a result, the measures that will be taken next will be a benchmark for many years.

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Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.