Published
1 year ago on
December 24, 2022
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The legal proceedings surrounding former FTX CEO, Sam Bankman-Fried, have taken an interesting turn as District Judge Ronnie Abrams had to recuse herself from the case.
Judge Ronnie Abrams, United States District Court for the Southern District of New York, had to withdraw her participation from the case against former FTX CEO Sam Bankman-Fried. Abrams revealed that a law firm employing her husband as a partner had previously advised FTX in 2021.
Abram’s Decision Removes Conflict of Interest
It was revealed in a filing that Abram’s husband, Greg Andres, currently serves as a partner at Davis Polk & Wardwell and has been employed there since June 2019. The filing also indicated that the firm offered legal services to the fallen cryptocurrency exchange in 2021. Abrams further explained that the reason for her recusal was informed by the fact that the law firm represented parties that may be adverse to FTX and its former CEO in other legal proceedings. Judge Abrams said:
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.
The judge’s decision to recuse herself from the case means that no conflict of interest in the FTX case exists as her husband continues to serve as a partner at Davis Polk & Wardwell.
SBF Released on $250 Million Bail
On December 22, the former FTX CEO was released on a $250 million bail bond secured by his parents who offered up their home in Palo Alto, California as collateral. Should SBF decide to flee, his parent would be liable for $250 million. SBF’s bail was also based on a written promise that he appear for future court appearances and not engage in any illegal activity. As a further part of his bail conditions, SBF has had to hand over his passport and will be confined to his parent's residence in Palo Alto.
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