The Sam Bankman-Fried (SBF) trial continued on October 6 (Day 4), with FTX Co-founder and SBF’s associate Gary Wang taking the stand once more in continuation of the proceedings from the previous day. Wang was more specific in his testimony this time as the prosecution provided more damning evidence against the defendant.
Wang Reveals Extent Of Fraud Under Sam Bankman-Fried
According to a thread on the X (formerly Twitter) platform by Inner City Press, which was present at the trial, Wang confirmed that Alameda Research enjoyed “special privileges” from FTX. The prosecution had already laid out a premise of a code attached to the FTX wallet page that kept track of the values in a user’s wallet.
There was an “allow negative” command in this code. If checked, such a user could go above their balance, which was how Alameda could trade more than what it had in its account. The trading firm allegedly had a “large line of credit” and could trade faster than others. Wang noted that this was kept secret and never disclosed, contrary to what SBF had said about the loans to Alameda being permitted.
Wang stated that Alameda used this “special privilege” to withdraw nearly $8 billion in fiat and crypto. This money allegedly belonged to FTX’s customers. With the ‘allow negative’ code in place, there was no limit on the amount Alameda could withdraw. This went on since July 2019, when FTX’s Director of Engineering, Nishad Singh, added the code. Interestingly, no one else besides Alameda enjoyed this privilege.
Wang also confirmed that the trading firm had a negative balance in 2019, and even then, Sam Bankman-Fried authorized that Alameda could withdraw up to $100 million. Alameda’s negative balance was so huge that it was more than
Go to Source to See Full Article
Author: Scott Matherson
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
