Gary Wang Confirms Giving Alameda Unlimited Access to Funds

Gary Wang Confirms Giving Alameda Unlimited Access to Funds

Time Stamp: October 6, 2023 6:15 AM
Source Node: 2922771

Gary Wang exposed intricate financial ties between FTX and Alameda Research.

Gary Wang, co-founder and former FTX CTO, took the stand as a key witness in the criminal trial against the former crypto exchange FTX CEO Sam Bankman-Fried, also known as SBF.

On October 5th, during his testimony, Wang shed some light on the intricate ties between FTX and Alameda Research, a company formerly headed by Caroline Ellison.

What is a Crypto Bridge? (Explained with Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

His appearance follows testimonies from other critical witnesses, including Adam Yedidia, a former FTX developer, and Matt Huang, co-founder of Paradigm.

It is worth noting that Wang's testimonies were part of an agreement he made with prosecutors after his guilty plea was filed in December 2022.

Assistant US Attorney Danielle Sassoon queried Wang, to which he responded:

We allowed Alameda to withdraw unlimited funds.

This significant admission alludes to shady financial practices within the FTX before it fell under. Wang further elaborated that his primary role was coding while it was SBF who was "speaking to the media, lobbying, talking with investors." He clarified that any disagreements ultimately fell to Bankman-Fried's judgment.

Interestingly, other witnesses have underscored that SBF directed his staff to use FTX's customer funds to compensate for Alameda's financial losses. This indicates a deeper and perhaps dubious relationship between the two entities than previously assumed.

Caroline Ellison and Nishad Singh, former CEO of Alameda Research and former engineering director at FTX, respectively, are also slated to provide evidence against Bankman-Fried. The trial is expected to wrap up sometime in November.

Earlier in August, Judge Lewis Kaplan had revoked Bankman-Fried's bail following accusations from prosecutors that he had tried to intimidate witnesses, including Ellison.

Gary Wang's latest testimony has added a new layer of complexity to the ongoing trial of Sam Bankman-Fried. With the co-founder openly admitting to crimes committed during his time at FTX and revealing unrestricted fund withdrawals allowed for Alameda Research, the case against SBF seems to be intensifying. Upcoming testimonies from former colleagues are highly anticipated, as all eyes are on the courtroom for what promises to be an eventful conclusion.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

Time Stamp:

More from Bit Degree