Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
Sam Bankman-Fried’s defense team is planning to put forwards its sole proposed expert witness to counter testimonies regarding the financial ties between FTX and Alameda, court documents from 23 October show.
According to a letter sent to New York District Judge Lewis Kaplan, SBF’s first expert witness will be Joseph Pimbley, a member of litigation consulting firm PF2 Securities, who will respond to testimony from former Alameda CEO Caroline Ellison, former FTX CTO Gary Wang, head of engineering Nishad Singh, and developer Adam Yedidia regarding Alameda’s line of credit with FTX and customer use of margin trading.
The letter explains that Pimbley will testify based of data he extracted from FTX’s database to convince the jury that Alameda’s line of credit with FTX “fluctuated between approximately $1 billion and $3 billion” between October 2021 and September 2022, and decreased significantly in June 2022.
In his testimony Pimbley will also claim that the majority of balances from non-FTX and non-Alameda users in the U.S. were concentrated in USD and three coins (BTC, ETH, and USDT), and the balances of 75% of those users came from accounts that had spot margin, spot margin lending, and show futures activity enabled. His disclosure also includes his database queries and some charts and diagrams tied to his work on the case, which were extracted from FTX’s Amazon Web Services database.
Pimbley is one of seven potential expert witnesses named by FTX defense team, who were all rejected by Judge Kaplan earlier this year, although he allowed four of them to testify if they shared more specifics about what they would testify in court beforehand. Although he is the sole proposed expert witness so far, it does not mean that Pimbley will be the last one.