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HomeNewsKey Factors From the Sam Bankman-Fried Trial's First Week

Key Factors From the Sam Bankman-Fried Trial’s First Week

  • Gary Wang – who’s beforehand pleaded responsible to comparable expenses to what Bankman-Fried faces – testified that Bankman-Fried directed him to jot down code permitting Alameda Analysis to have a destructive steadiness on FTX way back to July 2019.

  • In the end Alameda took and spent a minimum of $8 billion of FTX clients’ cash, Wang stated.

  • Wang opened by saying he dedicated crimes, did so with Bankman-Fried, Caroline Ellison and Nishad Singh and that he hoped for no jail time on account of his cooperation.

  • FTX had an insurance coverage fund with an quantity listed on its web site, however this quantity was basically a randomly generated determine, Wang stated.

  • For some time, FTX executives didn’t really understand how a lot Alameda owed its clients due to a software program bug, Adam Yedidia stated. The bug overstated the quantity owed by $8 billion (basically twice the actual quantity).

  • Alameda used FTX buyer deposits to pay again its lenders, Yedidia stated. Wang later confirmed that Alameda had returned lenders’ funds and that these funds “got here from FTX clients.”

  • FTX offered itself as a protected custodian to traders like Paradigm, Matt Huang stated.

  • Equally, Bankman-Fried advised Paradigm that Alameda had no preferential remedy, Huang stated. Wang later stated Alameda did obtain particular remedy (see level 1).

  • At no level did Bankman-Fried or anybody at FTX inform Paradigm that Alameda was exempt from its auto-liquidation function, Huang stated.

  • Paradigm has marked its $278 million funding in FTX to zero, Huang stated.

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