FTX Co-founder Admits to Multi-Billion Dollar Fraud in Testimony
In a shocking turn of events, FTX co-founder Gary Wang testified under oath during the criminal trial of Sam Bankman-Fried (SBF) in New York. Wang confessed to committing multi-billion-dollar fraud alongside SBF during their time at the now-defunct crypto exchange. He also implicated former Alameda Research CEO Caroline Ellison and former FTX engineering director Nishad Singh in these crimes.
SBF’s Accomplices: Ellison, Wang, and Singh
According to reports from the Inner City Press, Gary Wang provided evidence on October 5th, the third day of SBF’s trial. Ellison, Wang, and Singh had previously pleaded guilty following SBF’s arrest.
Gary Wang: Chief Technology Officer.
AUSA: Did you commit crimes at FTX?
Gary Wang: Yes. With Nishad Singh, Caroline Ellison and Sam Bankman-Fried.
AUSA: Is that him over there?
[A pause…] Gary Wang: Yes.
— Inner City Press (@innercitypress) October 5, 2023
During questioning by Assistant United States Attorney Danielle Sassoon, Wang admitted that they allowed Alameda Research to withdraw unlimited funds from FTX. He also stated that while he handled coding, media interactions, lobbying, and investor relations were primarily SBF’s responsibilities.
Potential Prison Sentence
SBF is currently facing seven counts of fraud, criminal conspiracy, and embezzlement. If convicted, he could be sentenced to up to 100 years in prison. While SBF’s defense argues that his actions were done in “good faith,” the prosecution maintains that his crypto empire was built on deceit.
Caroline Ellison and Nishad Singh are expected to testify against SBF before the trial concludes. SBF, whose bail was revoked in August, will remain in jail until the trial’s end.
Hot Take: FTX Co-founder’s Testimony Shakes Crypto Community
The admission of multi-billion-dollar fraud by FTX co-founder Gary Wang during Sam Bankman-Fried’s criminal trial has sent shockwaves through the crypto community. This revelation further tarnishes the reputation of FTX and raises questions about the extent of fraudulent activities within the exchange. As Wang implicates other key individuals, including Caroline Ellison and Nishad Singh, it remains to be seen how this trial will unfold and what impact it will have on the broader cryptocurrency industry. The outcome of the trial could have significant implications for the regulation and trustworthiness of crypto exchanges moving forward.
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