In his testimony during the Sam Bankman-Fried trial, former FTX co-founder Gary Wang revealed Alameda Research had unlimited access to customer funds on the cryptocurrency exchange.
FTX co-founder Gary Wang is testifying
In his testimony during the Sam Bankman-Fried trial, former FTX co-founder Gary Wang revealed Alameda Research had unlimited access to customer funds on the cryptocurrency exchange. He testified that SBF and members of his inner circle committed wire fraud.
He disclosed that Alameda withdrew $8 billion from FTX and had a $65 billion line of credit, despite other market makers typically having millions instead of billions. Wang, who was friends with SBF since high school and helped start the crypto exchange, also revealed that he earned $200k annually with 17% equity in FTX while SBF owned 65%. SBF retained ownership with 90% of Alameda, while Wang had 10%.
Wang said that Bankman-Fried took on more public facing roles, while he was focused on coding. Wang described that Alameda had special trading privileges on FTX, such as faster order executions, in addition to unfettered withdrawals. Following the collapse of the exchange, Wang pleaded guilty and agreed to cooperate in the fraud investigation.
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