Former FTX Employee Testifies in Bankman-Fried Trial
Adam Yedidia, a former employee of FTX and college roommate of Sam Bankman-Fried, testified on the second day of Bankman-Fried’s trial in New York. Yedidia, who was testifying for the prosecution with immunity, revealed that he worked as a trader for Alameda Research before joining FTX as a software developer.
During his testimony, Yedidia explained that when Alameda Research traded on FTX, the profits ultimately went to Bankman-Fried and Gary Wang, co-founders of FTX. He also mentioned that he was involved in automating customer deposits and withdrawals at FTX and initially believed that customer funds were being deposited into an FTX bank account. However, he later discovered that deposits were being sent to an account controlled by Alameda Research.
The North Dimension Account
Yedidia stated that customers were instructed to send their deposit funds to an account called North Dimension Inc., which they did not know was controlled by Alameda Research. He learned about this arrangement from Nishad Singh or Ray Salame, who worked at FTX. Although FTX eventually opened its own bank account called “FTX Digital Markets,” some customer deposits continued to be sent to the Alameda Research-controlled account.
Internal Tracking System
In addition to the North Dimension account, Yedidia mentioned an internal FTX database called “Fiat at FTX.com.” This database tracked customer deposits but did not hold actual money. The sum of customer deposits should have matched the liability recorded in the “Fiat at FTX.com” account.
Hot Take: Testimony Sheds Light on Financial Practices at FTX
The ongoing trial of former FTX CEO Sam Bankman-Fried has revealed new details about the financial practices at FTX. Adam Yedidia, a key witness and former FTX employee, testified that customer deposits were being sent to an account controlled by Alameda Research, rather than directly to FTX’s bank account. This raises questions about transparency and whether customers were aware of this arrangement. The testimony also highlighted the importance of internal tracking systems in ensuring accurate record-keeping and accountability. As the trial continues, it remains to be seen how these revelations will impact the outcome and potential consequences for Bankman-Fried and FTX.
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