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.
Where FTX customer funds were allegedly used
“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.
Conclusion
The FTX testimony is a reminder that counterparty risk can be the real trade, especially when platforms control withdrawals and internal rules. If you want exposure that relies less on trusting an exchange, cryptocurrency mining can be a practical route, backed by purpose built hardware like ASIC miners and proven bitmain miners such as the Antminer S19k Pro and newer Antminer models.
To keep decisions grounded, run scenarios with a Bitcoin mining calculator, a mining profitability calculator, and a compound calculator before committing to hardware. If you prefer a managed setup, crypto mining hosting can reduce operational load while keeping performance focused. Pair the operational side with a crypto trading course and trading education packages so you have a clear plan for risk and market cycles, then use free education resources to keep sharpening your fundamentals.
