In a recent court testimony, FTX co-founder Gary Wang disclosed that the insurance fund balance of the crypto exchange did not align with the actual funds held by the platform.
FTX Co-Founder Gary Wang Disclosed That The Insurance Fund's Balance Was Falsified During His Testimony
In a recent court testimony, FTX co-founder Gary Wang disclosed that the insurance fund balance of the crypto exchange did not align with the actual funds held by the platform. Wang stated that the insurance fund did not contain FTT, the native exchange token, and the displayed balance did not match the database records.
Insurance funds are critical in protecting users’ funds on cryptocurrency exchanges from unexpected financial losses. When questioned by the prosecution, Wang confirmed that the insurance fund balance was a "fake number." Wang also revealed the unusual method for calculating the balance, which involved multiplying a random number by the exchange's daily trade volume and dividing the result by one billion.
The ongoing trial of FTX co-founder Sam Bankman-Fried started on October 3, and is expected to conclude by mid-November. SBF faces up to 115 years in prison if convicted of all charges.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
