SBF Trial Day 3 – Former FTX CTO claims SBF granted Alameda Research ‘special privileges’ during witness testimony

The third day of the trial against Sam Bankman-Fried (SBF) unveiled deeper insights into the company’s financial operations and its founder’s personal habits.

In the morning session, testimony from Adam Yedidia, a college acquaintance of Bankman-Fried and a former Alameda and FTX staff member, provided a glimpse into the backend operations of FTX.

Yedidia delved into his work automating customer deposits and withdrawals, revealing a glitch that inflated FTX’s [email protected] account by a whopping $8 billion.

The prosecution shifted the court’s attention to the stark contrast between FTX’s original Hong Kong offices, which were extremely simple compared to the opulent offices and paddle tennis court in the Bahamas. Emphasizing signs of opulence, the prosecution also put forward images of SBF’s penthouse.

The defense countered the opulence argument by claiming that the penthouse was a shared living arrangement, while the offices were a sign of the crypto market’s success during that period. They added that SBF did not own a yacht and drove a Toyota Corolla, arguing that he led a simple life and the prosecution’s claims of opulence were unfounded.

An anecdote about SBF’s preference for sleeping on a bean bag chair in Hong Kong, which occasionally turned into naps in the Bahamas, provided a lighter moment in the proceedings.

The afternoon session was marked by Matt Huang’s testimony, co-founder of Paradigm, a significant investor in FTX. Huang’s testimony highlighted his concerns about FTX’s lack of a traditional governance structure and potential favorable conditions for Alameda Research.

Gary Wang, FTX’s Chief Technology Officer, admitted to financial misconduct during his tenure at FTX during his testimony. He further discussed specific privileges allegedly granted to Alameda Research on SBF’s instruction.

Judge Lewis Kaplan didn’t shy away from intervening, reproaching the defense on several occasions for repetitive lines of questioning, especially during Yedidia’s cross-examination.

Off the stand, the day was peppered

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Author: Assad Jafri

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