1 year ago
NEW YORK -- Alameda Research had “special privileges” astatine FTX that allowed the crypto hedge money to walk $8 cardinal of speech customers’ money, Gary Wang, a erstwhile apical lieutenant successful Sam Bankman-Fried’s empire, testified astatine proceedings Friday.
Taking the basal successful an ill-fitting achromatic suit, Wang, who co-founded some companies with Bankman-Fried, said that successful July 2019, conscionable soon aft the speech opened for business, Bankman-Fried directed him to constitute codification for FTX that would fto Alameda’s relationship equilibrium autumn beneath zero. It was a concealed diagnostic that nary different lawsuit of the crypto speech had, the insider-turned-government witnesser said.
“Sam told maine to marque definite Alameda’s accounts would ne'er get liquidated connected FTX,” Wang said.
Wang is the archetypal of astatine slightest 3 witnesses from Bankman-Fried’s interior ellipse who pled blameworthy to fiscal crimes and are present testifying against the alleged fraudster successful his transgression trial.
Once known arsenic FTX’s quiescent main exertion officer, Wang successful his grounds introduced the jurors to the byzantine fiscal arrangements that the authorities alleges enabled the 2 companies to bargain billions of dollars from FTX customers.
Months aft the crypto speech FTX was founded successful 2019, Wang said Friday, helium wrote “allow antagonistic equals zero” codification specified to Alameda accounts. He said Bankman-Fried ordered the codification truthful that the hedge money could walk wealth connected the exchange’s FTT token, the token created by FTX, but Alameda’s spending grew broader – and ne'er stopped.
“Sam said that helium wanted to wage for FTT-related expenses from Alameda accounts," Wang said.
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