Sam Bankman-Fried, the jailed founder of bankrupt cryptocurrency exchange FTX, appeared in court on Wednesday for the first time since his fraud conviction and confirmed he wanted to stick with new lawyers despite a possible conflict of interest.
Returning to court, he had noticeably lost some weight and his black hair was sprouting anew – similar to the first photos seen of him in prison – as he was led into court with his ankles shackled beneath his prison-issued drab pants and shirt.
In response to the judge’s questions, he acknowledged that he was on antidepressants and medication to keep his attention focused.
He answered questions casually, at times, saying ‘nope’ and ‘yep’ as his right foot tapped rapidly against the floor beneath the table where he sat.
Bankman-Fried, 31, in January hired defense lawyers Marc Mukasey and Torrey Young to represent him through his March 28 sentencing, which could see him jailed for up to 100 years.
Sam Bankman-Fried , the jailed founder of bankrupt cryptocurrency exchange FTX , appeared in court on Wednesday for the first time since his fraud conviction and confirmed he wanted to stick with new lawyers despite a possible conflict of interest. Pictured: Bankman-Fried in jail 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 courthouse in New York in this sketch
He could face decades in prison after a Manhattan federal court jury found the former billionaire guilty of stealing billions of dollars from FTX customers.
At a brief hearing before U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried said he was comfortable 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 wore a tan jail shirt and chains around his ankles, to describe the possible 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 monthlong trial last year.
Bankman-Fried described Celsius as ‘a firm that the firms I ran had business interactions with.’
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 electric- and hydrogen-powered truck maker Nikola’s 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 below the 11 years prosecutors suggested.
Bankman-Fried told Kaplan he had consulted with lawyers Mark Cohen and Christian Everdell, who represented him during his trial, about Mukasey’s potential conflict.
Returning to court, he had noticeably lost some weight and his black hair was sprouting anew. In this court sketch, he is depicted sitting with his lawyers Torrey Young (drawn left) and Marc Mukasey
In response to the judge’s questions, he acknowledged that he was on antidepressants and medication to keep his attention focused
He said he also had discussed it with Alexandra Shapiro, another lawyer who will handle his eventual appeal.
Mukasey said Cohen and Everdell will soon request Kaplan’s permission to withdraw from the case.
In a February 6 court filing, prosecutors in Bankman-Fried’s case said his Alameda Research hedge fund used stolen FTX customer funds to repay money it borrowed from Celsius.
The prosecutors said Bankman-Fried and Mashinsky may have different opinions as to whether Celsius was defrauded and entitled to restitution.
Bankman-Fried, held at Brooklyn’s Metropolitan Detention Center since August 2023, said on Wednesday he has been taking anti-depressant medication and Adderall, which is used to treat attention deficit hyperactivity disorder.
During his trial, Bankman-Fried’s lawyers said in October he needed a higher Adderall dose than he had been receiving in jail each morning to focus.
Mashinsky, 59, waived his right to a lawyer without any potential conflicts at a hearing on Tuesday before U.S. District Judge John Koeltl.
The two lawyers said at that hearing that they could fairly represent both Bankman-Fried and Mashinsky.
Bankman-Fried, 31, in January hired defense lawyers Marc Mukasey (pictured) and Torrey Young to represent him through his March 28 sentencing, which could see him jailed for up to 100 years
At a brief hearing before U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried said he was comfortable 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 free on bail. His trial on charges of artificially inflating the value of the company’s in-house crypto token and earning $42 million from selling his holdings is scheduled for Jan. 28, 2025.
Bankman-Fried who was convicted last year of stealing from customers of his now-bankrupt FTX cryptocurrency exchange has been pictured 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 locked up while awaiting sentencing, that could see him given 115 years in prison. He is due to be sentenced next month.
The photo, thought to have been taken on December 17, shows Bankman-Fried sporting a beard while standing alongside five other inmates.
Crypto crime reporter Tiffany Fong originally obtained the image, and spoke to an inmate pictured alongside Bankman-Fried.
The inmate, known as G Lock, described Bankman-Fried as being ‘strange as s***’ but did consider him to be a ‘good guy’.
FTX founder Sam Bankman-Fried leaves Manhattan federal court, June 15, 2023, in New York
G Lock, a former of the Blood gang, said: ‘Sam had a belly, he was eating good. [Now] he’s skinny like a toothpick.
‘He’s not getting a shower, he’s not doing anything. He didn’t snitch on nobody, Sam is a gangster.
‘Sam is more gangster than Tekashi69, Sam Bankman stood on all ten toes. Tekashi ratted.
‘He’s a good guy, he really is. Weird as s**t, can be strange. But he is a good guy.’ It’s not clear what G Lock had been in prison for.
Fong added: ‘He’s obviously lost some weight, and I’ve heard he’s not showering very much.
‘He’s not as clean-shaven as he used to be, but he’s obviously going through a lot right now.’