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Gary Wang, Co-Founder of FTX Testifies

FTX Co-founder Gary Wang’s Explosive Testimony

Gary Wang, the former co-founder and chief technology officer of FTX, provided testimony before a jury, alleging that he, along with Bankman-Fried, and former colleagues Caroline Ellison and Nishad Singh, were engaged in various deceptive activities.

Gary Wang, the co-founder and former chief technology officer of the cryptocurrency exchange FTX, took the stand as the latest witness in the criminal trial of former CEO Sam “SBF” Bankman-Fried.

Responding to Assistant United States Attorney Danielle Sassoon’s questions, Wang stated, “We allowed Alameda to withdraw unlimited funds.”

He further explained, “[Sam handled] speaking to the media, lobbying, talking with investors. I just coded […] in the end, it was Sam’s decision to make [regarding any disagreements].”

October 5th marked the third day of Bankman-Fried’s ongoing criminal trial in New York. Witnesses primarily discussed the connections between Alameda and FTX before the exchange filed for bankruptcy. This included testimony alleging that SBF had instructed employees to use FTX user funds to offset losses at Alameda.

“We gave special privileges to Alameda Research to allow it to withdraw unlimited funds from FTX and lied about it,” Wang stated.

Wang’s testimony resulted from an agreement with prosecutors as part of a guilty plea filed in December 2022. It is expected that Ellison and Singh will also testify against SBF before the trial’s anticipated conclusion in November.

Bankman-Fried is facing allegations of fraud and conspiracy linked to the downfall of his cryptocurrency business, which prosecutors described as a precarious situation akin to a “house of cards” in their opening arguments on Tuesday.

Wang took the stand after Paradigm co-founder Matt Huang, who provided testimony regarding his company’s past investments in FTX. He revealed that Paradigm had invested approximately $278 million across various funding rounds in both FTX and FTX U.S. When questioned about the current valuation of Paradigm’s FTX equity holdings, he responded, “we marked it to zero dollars.”

Bankman-Fried is expected to remain incarcerated during his criminal trial, as per a decision by Judge Lewis Kaplan who revoked his bail back in August. Prosecutors alleged that SBF had engaged in witness intimidation targeting Ellison and others.

It remains uncertain whether SBF intends to provide testimony in his own defense during the trial. Under the U.S. Constitution, individuals cannot be compelled to offer specific testimony if doing so might implicate themselves in criminal activity.

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