Wang, Co-Founder of FTX, Testifies that Sam Bankman-Fried and Other FTX Executives Engaged in Financial Crimes
Gary Wang, the former co-founder and chief technology officer of FTX, testified before a jury, asserting that he, along with Bankman-Fried, and former colleagues Caroline Ellison and Nishad Singh, were involved in various fraudulent activities.
Gary Wang, the co-founder and former chief technology officer of the cryptocurrency exchange FTX, took the stand as the most recent witness in the criminal trial of former CEO Sam “SBF” Bankman-Fried.
In response to Assistant United States Attorney Danielle Sassoon’s inquiry, Wang stated,“We allowed Alameda to withdraw unlimited funds.”
He went on to explain, “[Sam handled] speaking to the media, lobbying, talking with investors. I just coded […] in the end it was Sam’s decision to make [regarding any disagreements].”
October 5th marked the third day of Bankman-Fried’s ongoing criminal trial in New York. Witnesses primarily discussed the ties between Alameda and FTX before the exchange filed for bankruptcy. This included testimony alleging that SBF had instructed employees to utilise FTX user funds to offset losses at Alameda.
“We gave special privileges to Alameda Research to allow it to withdraw unlimited funds from FTX and lied about it,” Wang stated.
Wang’s testimony stemmed from an agreement with prosecutors as part of a guilty plea filed in December 2022. It is anticipated that Ellison and Singh will also provide testimony against SBF before the trial’s anticipated conclusion in November.
Bankman-Fried is confronted with allegations of fraud and conspiracy linked to the downfall of his cryptocurrency business, which prosecutors described as a precarious situation akin to a “house of cards” in their opening arguments on Tuesday.
Wang took the stand after Paradigm co-founder Matt Huang, who provided testimony regarding his company’s previous investments in FTX. He revealed that Paradigm had invested approximately $278 million across various funding rounds in both FTX and FTX U.S. When questioned about the current valuation of Paradigm’s FTX equity holdings, he responded, “we marked it to zero dollars.”
Bankman-Fried is expected to stay incarcerated during his criminal trial, as per a decision by Judge Lewis Kaplan who revoked his bail back in August. Prosecutors alleged that SBF had engaged in witness intimidation targeting Ellison and others.
It remains uncertain whether SBF intends to provide testimony in his own defence during the trial. Under the U.S. Constitution, individuals cannot be compelled to offer specific testimony if doing so might implicate themselves in criminal activity.