FTX's Former CTO Gary Wang Confesses to Wrongdoings in Bankman-Fried’s Criminal Trial
Summary:
Former FTX CTO Gary Wang testifies in the criminal trial against ex-CEO Sam Bankman-Fried. Accepting accusations of illicit activities, Wang spoke of allowing unlimited fund withdrawals and Engaging in questionable executive decisions. The New York trial, now on its third day, delves into the connections between FTX and Alameda before FTX's bankruptcy. Under a guilty plea agreement, Wang's testimony is expected to be followed by those from ex-colleagues Ellison and Singh. Bankman-Fried may face a jail term throughout the trial.
In the ongoing criminal litigation against former FTX CEO Sam "SBF" Bankman-Fried, Gary Wang, the co-founder and ex-CTO of the cryptocurrency trading platform, is the most recent witness to take the stand. As documented by Inner City Press, Wang presented his testimony on October 5, after earlier witnesses Adam Yedidia, an ex-FTX developer, and Paradigm co-founder Matt Huang. Wang confessed in court to engaging in illicit activities during his tenure at FTX, aided by Bankman-Fried, ex-Alameda Research CEO Caroline Ellison, and ex-director of FTX engineering, Nishad Singh.
When asked by Assistant U.S. Attorney Danielle Sassoon, Wang admitted, "We permitted Alameda to make endless withdrawals." He expanded on his and Bankman-Fried's roles saying that while Sam was keen on media interactions, lobbying, and investor relations, Wang's focus was mainly coding. Any disagreement resolutions were ultimately Sam's call.
October 5 marked the third day of the NY-based criminal trial against Bankman-Fried. Testimonies principally revolved around the ties between Alameda and FTX before the trading platform's bankruptcy. It was revealed that SBF instructed staff members to use funds from FTX users to offset Alameda's deficits. Wang's court appearance was a result of a guilty plea agreement made with the prosecution in December 2022. Witnesses Ellison and Singh are also lined up to testify against SBF, with the trial projected to end in November.
On the subject of Bankman-Fried's private jets, the prosecution stated they are liable to confiscation. As per Judge Lewis Kaplan's order, Bankman-Fried is likely to remain incarcerated throughout his trial, issued after allegations of witness intimidation surfaced against him. SBF's stance on owning up to the charges is yet unknown, as U.S. law prohibits any forced confession that could lead to self-incrimination. This crop of events stirs up the question: Can we trust crypto exchanges after FTX's downfall?
Published At
10/5/2023 8:39:47 PM
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