Gary Wang Testifies to Committing Financial Crimes at FTX
Gary Wang, co-founder of FTX and Alameda Research, admitted to committing financial crimes while running the collapsed crypto exchange and its affiliate. During Sam Bankman-Fried’s trial for fraud and conspiracy, Wang testified that they provided special privileges to Alameda Research, allowing them to withdraw unlimited funds from FTX. He also confessed to securities fraud, commodities fraud, and wire fraud, along with Bankman-Fried and other executives.
Alameda’s Privileges and Debt
Wang revealed that Alameda had access to a large line of credit amounting to $65 billion. They also enjoyed faster order processing on FTX’s platform and the freedom to withdraw funds without restrictions. Additionally, Wang disclosed that the “unlimited funds” came from FTX customers who unknowingly directed their funds to Alameda through a special code in their transactions.
From Coding to Courtroom
As FTX’s former CTO, Wang took responsibility for creating and inspecting the code. While Bankman-Fried did not code, he provided instructions to Wang and other developers. Wang emphasized that final decisions rested with Bankman-Fried. These internal financial privileges were kept hidden from the public.
Bankman-Fried’s Ownership and Alameda’s Name
According to Wang, Bankman-Fried owned 90% of Alameda and 65% of FTX, while he held a 10% stake in both companies. Wang also explained that the name “Alameda” was chosen by Bankman-Fried as it sounded prestigious and conventional. The aim was to avoid direct association with cryptocurrency terminology, making it easier to engage in various business activities.
Hot Take: FTX Founders Admit to Financial Crimes in Trial
In a shocking turn of events, Gary Wang, co-founder of FTX and Alameda Research, has testified to committing financial crimes while operating the collapsed crypto exchange. Alongside Sam Bankman-Fried and other executives, Wang admitted to securities fraud, commodities fraud, and wire fraud. The trial sheds light on the privileges granted to Alameda, including access to unlimited funds from FTX customers. This revelation raises concerns about transparency and trust within the cryptocurrency industry. As the trial continues, it remains to be seen how this will impact the reputation of FTX and its founders.
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