Former FTX Lawyer Reveals Shocking Transfer of Customer Funds
Can Sun, the former general counsel of FTX, testified in court that he was surprised to discover that FTX founder Sam Bankman-Fried had secretly moved billions of dollars in customer funds to his hedge fund, Alameda Research. Sun stated that he resigned the day after realizing that $7 billion was missing from spreadsheets. He expressed shock at the extent of the fraudulent transfers and concluded that funds had been misappropriated.
Sun’s Testimony in Bankman-Fried’s Criminal Fraud Trial
In Sam Bankman-Fried’s criminal fraud trial, Can Sun, the former general counsel of FTX, provided testimony to federal prosecutors. Sun revealed that he had no knowledge of FTX’s secret transfer of customer funds to Bankman-Fried’s trading firm, Alameda Research. He was shocked when he discovered that $7 billion was missing and concluded that funds had been misappropriated.
Resignation and Lack of Response from Bankman-Fried
Sun resigned as general counsel of FTX the day after discovering the missing funds. Despite raising his concerns with Bankman-Fried, Sun received a muted response. Bankman-Fried did not seem surprised by the revelation and only responded with a brief acknowledgment.
Legal Justification and Employment Contracts
During cross-examination, Sun discussed his employment contract with FTX, which showed loans and bonuses totaling $3.5 million from Alameda Research. When questioned about any connection between these financial arrangements and the missing funds, Sun stated that they were both related to his employment.
Non-Prosecution Agreement and Encrypted Messaging Apps
Sun admitted to signing a non-prosecution agreement with prosecutors, which required him to provide truthful testimony. He acknowledged that he could face prosecution if he did not tell the truth. Bankman-Fried’s attorney also questioned Sun about the use of encrypted messaging apps within the legal department.
Cooperation of Former FTX and Alameda Executives
Several former FTX and Alameda executives, including Caroline Ellison, Gary Wang, and Nishad Singh, have pleaded guilty and cooperated with prosecutors. Bankman-Fried is facing fraud and conspiracy charges and could potentially be sentenced to over 100 years in prison if convicted. However, he has pleaded not guilty to the charges.
Hot Take: Shocking Revelations in FTX Fraud Trial
In the ongoing criminal fraud trial of FTX founder Sam Bankman-Fried, former general counsel Can Sun’s testimony has revealed shocking details about the transfer of customer funds. Sun’s surprise at discovering $7 billion missing and his conclusion that funds had been misappropriated highlight the magnitude of the alleged fraud. The lack of response from Bankman-Fried and the connection between Sun’s employment contracts and the missing funds raise further questions. With other former executives cooperating with prosecutors, this trial continues to uncover significant developments in the case against Bankman-Fried.
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