Ex-FTX CEO Testifies in Court, Denies Fraudulence and Sheds Light on Alameda's Functions
Summary:
In the ongoing trial, ex-FTX CEO Sam "SBF" Bankman-Fried testified, primarily denying knowledge of the alleged fraudulent operations at the crypto exchange. He implicated the former CTO for part creation of a function that enables crypto hedge fund Alameda Research to transact more than its available funds. Additional details will follow as the story develops.
In the ongoing criminal court case, the jury heard Sam "SBF" Bankman-Fried, ex-CEO of FTX, presenting his evidence. He primarily claimed ignorance of any illicit operations within the cryptocurrency exchange. Courtroom updates from New York on October 27 indicate that Bankman-Fried implicated Wang, FTX's ex-Chief Technology Officer, as a partial contributor to the creation of Alameda Research's "allow negative" button. This functionality enabled the crypto hedge fund to transact exceeding its available capital.
Bankman-Fried, talking about Alameda's credit line, was quoted saying he was not wholly confident about what was transpiring at that time. Believing that the funds were securely placed in a bank or dispatched to FTX in the form of stable coins, he conjectured that if Alameda was retaining it, it would display as a deficit number on FTX.
As this is an evolving report, more details will be incorporated as they come to light.
Published At
10/27/2023 4:24:26 PM
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