BitMEX Research Reveals Allegations of Inaccurate Insurance Balance in SBF Trial
BitMEX Research has shared transcript excerpts from the ongoing fraud trial of Sam Bankman-Fried, the founder of FTX. According to the excerpts, FTX co-founder Gary Wang testified that the numbers for FTX’s insurance fund were highly inaccurate. BitMEX Research further alleged that the insurance balance was generated by a random number generator, which is considered fraudulent when used for insurance balances or bank account balances. Wang admitted during the trial that the numbers provided to the public were incorrect and that they did not match what was in the database.
Complex Math Used to Generate FTX Insurance Data
BitMEX Research explained that FTX’s insurance balance was produced through complex math involving multiplication and division. The final result, which was presented to the public, went through various calculations with a random number around 7500 and a billion as factors. Wang disclosed this process during his testimony.
SBF Trial Continues Amidst Ongoing Drama
The trial of Sam Bankman-Fried started on October 3 and is expected to continue until mid-November. Despite unsuccessful attempts to secure his release for better trial preparation, Bankman-Fried has remained under house arrest since August. The trial has seen dramatic moments, including Judge Kaplan requesting Wang to speak more slowly during his testimony and Wang admitting that Alameda Research had access to unlimited funds from FTX.
Hot Take: Allegations of Inaccurate Insurance Balance Raise Concerns
The allegations made during Sam Bankman-Fried’s fraud trial regarding FTX’s insurance balance raise concerns about transparency and trust within the crypto industry. If true, using a random number generator to determine insurance balances would be considered fraudulent. This highlights the importance of accurate and reliable financial reporting in the cryptocurrency space. As the trial continues, it remains to be seen how these allegations will impact FTX and its reputation in the industry.
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