There was no doubt about who made the major calls at FTX, according to a former top executive testifying in the federal fraud trial of Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange. Gary Wang, who took the stand for six hours over Thursday and Friday, told a New York jury that “In the end, it was Sam’s decision.” One of the critical decisions made by Bankman-Fried was allowing the misuse of billions of dollars from FTX customers by a closely affiliated hedge fund, Alameda Research, as reported by the New York Times.
Last year, it was discovered that FTX’s accounts had an $8 billion shortfall, which prosecutors attribute to Alameda’s access to customers’ funds. Wang confessed to writing the code, along with another programmer, that created a backdoor allowing Alameda to borrow from FTX’s accounts without restrictions. He testified that Bankman-Fried was aware of this. Furthermore, Wang stated that Bankman-Fried lied publicly in November when he claimed that FTX customer assets were secure. Wang has pleaded guilty in the case and testified as part of a cooperation agreement with the prosecution. Caroline Ellison, the former head of Alameda Research, also pleaded guilty and is scheduled to testify on Tuesday, according to CNBC. (Read more Sam Bankman-Fried stories.)
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