1 year ago
FTX’s erstwhile wide counsel Can Sun testified Thursday successful national tribunal that helium was shocked to larn FTX laminitis Sam Bankman-Fried (SBF) had secretly transferred billions successful lawsuit funds to his hedge money Alameda Research. Sun told prosecutors helium resigned the time aft realizing the scope of lawsuit wealth siphoned, pursuing spreadsheets showing $7 cardinal was missing.
‘Funds Had Been Misappropriated,’ Former FTX Lawyer Says
Can Sun, erstwhile wide counsel of the failed crypto speech FTX, took the basal Thursday successful Sam Bankman-Fried‘s transgression fraud trial. Sun told national prosecutors helium was unaware FTX had secretly transferred lawsuit funds to Bankman-Fried’s trading steadfast Alameda Research.
“I was shocked. There were $7 cardinal missing,” testified Sun astir learning the grade of fraudulent transfers. Prosecutors displayed FTX spreadsheets to Sun, who said helium concluded “funds had been misappropriated.” Sun’s grounds was published by Matthew Russell Lee from the Inner City Press.
Sun outlined resigning arsenic wide counsel the time aft his revelation, contempt joining FTX from the instrumentality steadfast Fenwick & West. Sun claimed helium approached SBF regarding the concerns, yet the effect from the FTX person was notably muted.
“I expected a bigger response. But each [SBF] said was, Got it. He didn’t look surprised,” Sun remarked astir Bankman-Fried’s calm reaction.
Sun recalled SBF asking him to supply a “legal justification” for the missing billions aft a backstage equity steadfast inquired. “No. He did not archer maine anything,” answered Sun erstwhile asked if SBF explained the transfers.
Under cross-examination, SBF’s lawyer Mark Cohen discussed Sun’s FTX employment declaration showing $3.5 cardinal successful loans and bonuses from Alameda Research. Questioned if connected, Sun stated, “Well they were some astir my employment.”
Sun conceded to signing a non-prosecution statement with prosecutors requiring truthful testimony. “You could beryllium prosecuted if you don’t archer the truth?” Cohen inquired. Sun responded with a succinct “yes.” SBF’s lawyer besides pressed Sun connected whether encrypted messaging apps were utilized by the ineligible department.
Sun’s grounds follows erstwhile FTX and Alameda executives Caroline Ellison, Gary Wang and Nishad Singh cooperating with prosecutors aft pleading guilty. Bankman-Fried perchance faces implicit 100 years successful situation if convicted of fraud and conspiracy charges, for which helium has pleaded not guilty.
What bash you deliberation astir the grounds from Sun and the $7 cardinal missing? Share your thoughts and opinions astir this taxable successful the comments conception below.
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