Former FTX CTO Gary Wang Confesses to Financial Crimes with Bankman-Fried
In the trial of FTX founder Sam Bankman-Fried, former FTX chief technology officer Gary Wang took the stand and admitted to committing financial crimes alongside Bankman-Fried, former Alameda CEO Caroline Ellison, and former FTX engineering executive Nishad Singh.
The Close Relationship Between Wang and Bankman-Fried
Wang testified that he and Bankman-Fried have known each other since high school when they met at a summer camp. After college, Wang joined Bankman-Fried at Alameda Research. He revealed that FTX allowed Alameda Research to withdraw unlimited funds from the exchange, with special privileges coded into FTX’s systems for this purpose.
The Origins of Alameda Research and Wang’s Role at FTX
Wang explained that Alameda Research was named after Alameda County in California, where it was founded. He owned 10% of the company while Bankman-Fried owned the remaining 90%. At FTX, Wang focused on coding while Bankman-Fried handled media relations, lobbying, and investor communication.
Wang’s Wealth and Prosecution’s Case
Wang earned a $200,000 salary at FTX and owned 17% of the company’s stock, making him a billionaire on paper before FTX’s collapse. Prosecutors presented evidence highlighting Wang’s integral role at FTX and his close relationship with Bankman-Fried. The prosecution also showcased photographs and played a podcast snippet related to Alameda Research’s name origin.
Hot Take: Implications for the Trial
The testimony from Gary Wang further strengthens the prosecution’s case against Sam Bankman-Fried. Wang’s admission of committing financial crimes and his close relationship with Bankman-Fried provide compelling evidence of their alleged wrongdoing. The trial will likely continue to reveal more details about the extent of their involvement and the impact on FTX’s operations. As the proceedings unfold, Bankman-Fried’s defense team will aim to challenge Wang’s testimony during cross-examination.
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