Tag: FTX

Sam Bankman-Fried Ordered ‘Special Privileges’ for Alameda, FTX Co-Founder Gary Wang Testifies

Taking the stand in an ill-fitting black suit, Wang, who co-founded both companies with Bankman-Fried, said that in July 2019, just shortly after the exchange opened for business, Bankman-Fried directed him to write code for FTX that would let Alameda’s account balance fall below zero. It was a secret feature that no other customer of the crypto exchange had, the insider-turned-government witness said. Source

Former FTX Co-Founder Gary Wang Exposes SBF’s Shady Dealing with Alameda at Trial

Wang’s testimony was part of a plea agreement with prosecutors stemming from his guilty plea filed in December 2022. In a riveting turn of events at the ongoing criminal trial of FTX founder Sam Bankman-Fried (SBF), Gary Wang, the company’s former chief technology officer, unveiled startling revelations about the inner workings of the exchange and its sister company Alameda Research. On October 5th, day three of the trial, Wang took the stand after a short break, disclosing critical information regarding the collaboration between FTX and Alameda, noting that they were…

Hack Saga Linked to Sam Bankman-Fried’s FTX Deepens as THORSwap Pauses Trades

CryptoX – Cryptocurrency Analysis and News Portal “Yesterday, following a careful evaluation of the situation and consultation with advisors, legal counsel, and law enforcement, the decision was made to temporarily transition the THORSwap interface into maintenance mode,” THORSwap developers said in a tweet. Original Source The post Hack Saga Linked to Sam Bankman-Fried’s FTX Deepens as THORSwap Pauses Trades appeared first on CryptoX. CryptoX Portal

FTX employees were aware of Alameda’s backdoor code

The Wall Street Journal has confirmed that Alameda Research used a secret backdoor in FTX, the defunct exchange, to withdraw billions of dollars of customer funds, and some of the exchange’s U.S.-based employees were aware of it. In spring 2022, a group of employees at LedgerX discovered a backdoor in the system that allowed Alameda Research, a third-party company, to transfer customer funds.  Although concerns were raised about the “special code,” it was not addressed, and a senior manager was later fired.  FTX staff became aware of the situation after LedgerX employees reported the…

SBF was ‘very resistant’ to investors on FTX board: Paradigm co-founder

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Sam Bankman-Fried was “very resistant” to having investors join the board of directors at FTX, claims Matthew Huang, the co-founder and managing partner of crypto investment firm Paradigm. Paradigm and a number of venture capital firms including Sequoia, Temasek and BlackRock were burned by their funding of the now-bankrupt crypto exchange with all facing scrutiny — and subsequently issuing statements — on their investment in FTX. Testifying on the third day of Bankman-Fried’s trial in a New York Federal Court, Huang claimed Bankman-Fried believed having investors on FTX’s board of…

Who are the key witnesses in FTX founder Sam Bankman-Fried’s trial? 

Sam Bankman-Fried’s trial has entered its third day, as the FTX founder is facing seven different charges of wire fraud and money laundering. After jury selection ended on day 2, both sides geared up with key witnesses to present their case.  Senior District Judge Lewis A. Kaplan is presiding over the case, and Assistant U.S. Attorney Nicolas Roos is leading the prosecution. The defense is being led by Mark Cohen.  So far, three witnesses have been questioned and cross-examined. However, more than 22 key witnesses are set to appear throughout…

FTX Co-Founder’s Trial Commences: Defense Shifts Blame to Ex-Girlfriend and Binance CEO for Exchange’s Collapse

boss

FTX co-founder Sam Bankman-Fried’s (SBF) defense team tried to place blame on his ex-girlfriend, Caroline Ellison, and Binance CEO Changpeng Zhao (CZ) for the collapse of the cryptocurrency exchange. Mark Cohen, SBF’s lawyer, argued during the opening statements that SBF did not defraud anyone and acted in good faith, shifting responsibility for the alleged misconduct onto CZ, media reports said. Cohen contested the portrayal of SBF as a “cartoon villain,” describing him as a math nerd who abstained from drinking and partying. The defense asserted that SBF believed loans from…