Lawyers for former FTX CEO Sam Bankman-Fried want to interrogate Gary Wang, the exchange's former CTO, regarding personal debts worth $200 million to $300 million. In a recent letter, Cohen & Gresser LLP stated that they planned to question Wang before his impending hearing. Caroline Ellison, the former CEO of Alameda Research, is scheduled to appear after Wang.

The investigation of $300 million in loans is at the center of this judicial dispute. Wang got loans from Alameda Research for investments and real estate acquisitions. The defense wants to interview Wang regarding the part played by FTX lawyers in arranging and enabling these loans.

According to Cohen & Gresser LLP attorney Chris Everdell, Wang previously testified for the prosecution and indicated that FTX attorneys were involved in the loan transactions. The defense claims that this line of inquiry is relevant to Bankman-Fried's case, particularly with relation to the accusation of conspiracy to launder money. According to the indictment, Bankman-Fried allegedly tried to hide the source of investment money by claiming they were from FTX client monies that were sent through Alameda.

The idea that the loans were just a gimmick to hide the source of the cash may be challenged by asking Wang about his knowledge that attorneys were in charge of structuring the loans and that these arrangements were documented. According to reports, Wang told the prosecution he relied on legal guidance for the loans and didn't think they were intended to be illegal or conceal Alameda as the source of the money.

This witness supports Bankman-Fried's assertion that the loans were lawful. Therefore, the defense is requesting permission from the court to go into these topics during Wang's cross-examination. Wang recently spoke about Alameda's distinctive benefits and a big $65 billion credit line. He also explained how Alameda was able to trade without the requirement for collateral thanks to the "allow negative" feature, which was created in conjunction with Nishad Singh. Caroline Ellison, the former CEO of Alameda Research, will testify after Wang has been cross-examined.