On the third day of the fraud trial against Sam Bankman-Fried, the former head of technology of the collapsed crypto exchange FTX accused his then boss. Among other things, he had to grant Bankman-Fried’s Alameda brokerage a $65 billion (currently about 62 billion euros) credit line, Gary Wang said in a New York court. This is many times more than with other users.
Authorities accuse Bankman-Fried of billions in fraud and embezzlement of customer money. It is said that he secretly moved money around to speculate and finance his lavish lifestyle. “There were so many withdrawals that FTX could not pay out customers who wanted to withdraw their funds,” Wang said. At the time of the FTX bankruptcy, Alameda’s outstanding debts would have totaled $8 billion.
Several managers have pleaded guilty
Wang, 30, was one of several FTX executives who pleaded guilty at a hearing earlier this year. The crypto exchange co-founder allegedly manipulated software to conceal the movement of FTX customer funds to Alameda.
Bankman-Fried has repeatedly denied fraud allegations but admits faults in the company’s management. The process is expected to take six weeks. If convicted, Bankman-Fried could face up to 115 years in prison.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
