Former FTX Developer Testifies About $8 Billion Deficit at SBF’s Trial
In the ongoing criminal trial of Sam “SBF” Bankman-Fried, Adam Yedidia, a former roommate of SBF and developer at FTX, testified about the $8 billion deficit reported by the crypto exchange before its bankruptcy. Yedidia revealed that there was a bug in FTX’s code that caused “Alameda’s liabilities did not decrease,” resulting in the significant error. He also disclosed that Alameda Research, a key connection to the crypto exchange, used customer deposits to pay off its loans.
Revelations and Allegations During Testimony
During his testimony, Yedidia stated that Bankman-Fried instructed him to discuss FTX’s code issue using the messaging app Signal. The former CEO believed that deleting messages would prevent regulators from finding anything detrimental to the company. Yedidia also mentioned Bankman-Fried’s personal relationship with Caroline Ellison, the former CEO of Alameda Research, stating that SBF had asked him if they should date.
Upcoming Witnesses and Trial Proceedings
Gary Wang, one of the co-founders of FTX, is expected to testify after Yedidia. Prosecutors may also call on Nishad Singh, former FTX engineering director, and Constance Wang, former FTX chief operating officer. Caroline Ellison is set to testify against Bankman-Fried as part of her plea agreement. The trial began with jury selection on October 3 and is projected to continue until November.
Hot Take: SBF’s Trial Exposes Damaging Revelations About FTX
The ongoing criminal trial of Sam “SBF” Bankman-Fried has shed light on significant issues within FTX, the crypto exchange he led. Testimony from Adam Yedidia, a former FTX developer and roommate of SBF, has revealed an $8 billion deficit caused by a code bug and the misuse of customer deposits by Alameda Research. The trial also highlighted Bankman-Fried’s attempt to maintain secrecy through encrypted messaging and his personal relationships. As the trial progresses, it becomes increasingly evident that FTX was facing serious internal problems before its bankruptcy, which raises questions about the company’s operations and integrity.
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