The court trial of former FTX founder and CEO Sam Bankman-Fried (SBF) continues with more revelations coming out daily. The trial which has now reached day 3 saw witness testimony from co-founder and former CTO Gary Wang.
According to updates from Inner City Press, Gary Wang was called as the next witness to address the courtroom on October 5. When questioned about committing fraud during his time at FTX, Wang admitted it saying he committed crimes alongside Sam Bankman-Fried, Nishad Singh, and Caroline Ellison.
Alameda was allowed to withdraw “unlimited funds”
Wang was questioned by Assistant United States Attorney Danielle Sassoon about the type of fraud they committed, he replied “We allowed Alameda to withdraw unlimited funds,” adding that the bug that made this possible existed in the FTX code.
AUSA: What was the wire fraud?
Gary Wang: We allowed Alameda to withdraw unlimited funds.
Judge Kaplan: Mr. Wang, could you slow down?
[Some had said Gary Wang couldn't or wouldn't speak. But he's speaking, and fast]Advertisement
— Inner City Press (@innercitypress) October 5, 2023
The third day of the court trial of SBF saw witnesses speaking largely about the connections between the defunct FTX crypto exchange and Alameda Research. There were testimonies that suggested that Sam Bankman-Fried had instructed employees to cover losses at Alameda using FTX funds.
Wang went on to talk about his personal relationship with SBF, saying that they met at camp in high school after he had moved from China to Minnesota. He went on to reveal that he worked with Google for a while after graduating college before working with Sam at Alameda.
Wang also revealed that he owned 10% of Alameda while Sam had the remaining 90%. When asked about their individual roles at FTX, Wang said that all he did was code, Sam was responsible for speaking to the media, lobbying, and talking with investors.
Meanwhile, Gary Wang made this testimony to the court as a result of an agreement with attorneys as part of a guilty plea filed in December 2022. Caroline Ellison and Nishad Singh are also expected to take the stand before the conclusion of the court trial by November 2023.
Sam Bnkman-Fried accused of intimidating witnesses
The embattled CEO was accused of intimidating witnesses such as Ellison and others. In August, his bail was revoked by Judge Lewis Kaplan which means he might remain in jail throughout the time frame of the court trial.
At this point, it is not clear if SBF plans to speak for himself as no person can be forced to under U.S. laws if the said testimony might be self-incriminating.
Read More:
- Inside Sam Bankman-Fried’s (SBF) Legal Battle: All You Need to Know
- FTX Founder SBF Planned to Bribe Donald Trump to Stop Presidential Run: Reports
- FTX Hacker Resurfaces, Moves $38 Million Worth of Ethereum
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.