Sam Bankman-Fried, the former CEO of FTX, is preparing to present an expert witness to counter testimonies made by Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia concerning the financial connections between FTX and Alameda Research.
In a letter addressed to New York District Judge Lewis Kaplan on October 23, Bankman-Fried’s legal team stated their intention to have Joseph Pimbley, an expert from PF2 Securities, provide testimony on behalf of the former FTX CEO. Pimbley’s testimony will be based on data obtained from FTX’s database and will aim to establish a definitive timeline for Alameda’s line of credit with FTX. He will assert that the line of credit fluctuated between approximately $1 billion and $3 billion from October 2021 to September 2022, with a decrease noted in June 2022.
Furthermore, Pimbley’s testimony will emphasize that the majority of balances for users not associated with FTX or Alameda are held in US dollars, Bitcoin, Ether, and Tether. He will also note that over 75% of these user balances are related to accounts with features like spot margin, margin lending, or futures activity. This information will provide context for the testimonies given by former FTX executives.
![FTX Founder Calls in Expert to Challenge DOJ Witnesses image 125](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-125.png?resize=864%2C722&ssl=1)
![FTX Founder Calls in Expert to Challenge DOJ Witnesses image 125](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-125.png?resize=864%2C722&ssl=1)
Joseph Pimbley’s testimony is intended to counter claims made by Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia regarding Alameda’s line of credit and the use of margin trading by FTX customers.
Specifically, Pimbley’s testimony will address Ellison’s assertion that Alameda had an “essentially unlimited line of credit on FTX” and Wang’s statement that the firm had borrowed “around $3 billion” from the credit line. Pimbley’s 54-page disclosure includes a range of charts, excerpts from spreadsheets, diagrams, and database queries from FTX’s Amazon Web Services database related to the line of credit between FTX and Alameda from October 2021 to November 2022.
![FTX Founder Calls in Expert to Challenge DOJ Witnesses image 126](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-126.png?resize=808%2C707&ssl=1)
![FTX Founder Calls in Expert to Challenge DOJ Witnesses image 126](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-126.png?resize=808%2C707&ssl=1)
It’s worth noting that Joseph Pimbley is not financially invested in the outcome of the case and will be compensated at a rate of $720 per hour, along with expenses.
He was one of seven expert witnesses initially proposed by Sam Bankman-Fried’s legal team. While Judge Kaplan initially barred these witnesses from testifying, he allowed the possibility of future testimony if it served to respond to government witness statements and clarify their claims.
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