TL;DR
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Gary Wang just pulled an 8 mile – admitting to all the crimes he’d committed right out of the gate, so the defense had nothing to hurl at him – then went on to reveal the following:
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The FTX ‘Insurance Fund’ (a fund designed to protect users if/when the market was turbulent) didn’t own half the assets it said it did.
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Gaz also admitted to having permitted Alameda to make unlimited withdrawals at FTX, regardless of its balance.
Full Story
Alright, it’s SBFTUT!
(Sam Bankman-Fried Trial Update Time).
Here’s what you missed:
FTX co-founder, Gary Wang, came. in. swinging!
Seriously, this dude pulled an 8 mile – admitting to all the crimes he’d committed right out of the gate, so the defense had nothing to hurl at him – then went on to reveal the following:
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The FTX ‘Insurance Fund’ (a fund designed to protect users if/when the market was turbulent) didn’t own half the assets it said it did.
…and the figure on the FTX website which displayed the Fund’s total reserves was entirely made up:
“So it’s a fake number?” asked the prosecution. “Yes,” responded G-Wang.
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Gaz also admitted to having permitted Alameda to make unlimited withdrawals at FTX, regardless of its balance.
I.e. If Alameda ran out of money, FTX would let it keep trading using customer funds.
Big yikes for Sam!
