Former FTX Developer Testifies on Alleged Financial Misdeeds
Adam Yedidia, a former MIT roommate and FTX developer of Sam Bankman-Fried, provided compelling testimony on October 5th in the United States District Court for the Southern District of New York. Yedidia revealed that FTX had an alleged $8 billion deficit before declaring bankruptcy and shed light on the intricate connections between FTX and Alameda Research. He also highlighted a critical bug in FTX’s code that resulted in a significant financial error.
Yedidia Exposes FTX’s Alleged Financial Misdeeds
Yedidia’s revelations about the interactions between FTX and Alameda Research have become central to the fraud allegations against SBF. During his testimony, Yedidia disclosed that he resigned from FTX after discovering that Alameda had used customer deposits to pay its loans. He also mentioned that Bankman-Fried preferred using Signal for FTX code discussions due to its auto-delete feature, which aimed to protect the company from regulatory backlash.
Near a paddle tennis court in The Bahamas, Yedidia confronted Bankman-Fried about the $8 billion financial discrepancy, leading to tense exchanges but ultimately receiving reassurances from the CEO.
Ellison to Testify Against Bankman-Fried Soon
Caroline Ellison, former CEO of Alameda Research, plans to testify against Bankman-Fried following her plea agreement with prosecutors. Bankman-Fried’s bail was revoked in August after being accused of witness intimidation against Ellison. The trial began on October 3rd with jury selection and is expected to continue through November. Other witnesses, including Gary Wang, one of the co-founders of FTX, may also testify.
Hot Take: Former FTX Developer Reveals Alleged $8 Billion Deficit and Code Bug
In a recent court testimony, a former FTX developer detailed an alleged $8 billion deficit reported by the crypto exchange before its bankruptcy. The developer also highlighted a critical bug in FTX’s code that resulted in significant financial errors. These revelations have become central to the allegations of fraud against FTX’s CEO, Sam Bankman-Fried. Additionally, the testimony shed light on the connections between FTX and Alameda Research, including the use of customer deposits to pay loans. The trial is ongoing, with more witnesses expected to testify against Bankman-Fried.
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