Sam Bankman-Fried hires lawyer as US authorities investigate FTX: Report

Former FTX CEO Sam Bankman-Fried has reportedly hired Mark Cohen, a former federal prosecutor, to act as his attorney.

According to a December 6 Reuters report, Bankman-Fried spokesman Mark Botnick said the former CEO of FTX has retained Cohen amid a spate of civil lawsuits from investors in the crypto exchange and investigations by lawmakers and regulators in the United States. Cohen, co-founder of law firm Cohen & Gresser, was a former assistant U.S. attorney for the Eastern District of New York who was also part of the defense team for the high-profile case involving Ghislaine Maxwell – sentenced to 20 years in prison for child abuse. sex trafficking and related charges.

Lawmakers with the US Senate and House of Representatives have announced separate hearings to examine the collapse of FTX and the potential impact on investors and traditional markets. The House Financial Services Committee leadership has called Bankman-Fried to speak at a hearing on FTX on Dec. 13, but the former CEO suggested he would testify only after he “learns and assesses what happened.” It is unclear whether he would be speaking in person or remotely from the Bahamas.

FTX Group filed for bankruptcy in the Delaware County under Chapter 11 on Nov. 11, following a reported “liquidity crunch” in which the company claimed billions in leverage that left it unable to meet user withdrawal demands. Bankruptcy court filings suggested that FTX could answer to more than 1 million creditors.

Related: Texas enforcers want Sam Bankman-Fried to attend February hearing

Bankman-Fried has appeared on various media outlets and spoken to reporters many times after the collapse of FTX, despite criticism from many in the crypto space. The former CEO of FTX has repeatedly apologized for his role in the exchange’s downfall, saying he intended to make amends with affected team members, but offered no concrete plan to heal investors. John Ray became CEO of the exchange in November.

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