In a significant turn of events, close associates and former colleagues of Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange FTX, have emerged as key witnesses providing damning evidence in the ongoing criminal case against him. This week, Gary Wang, 30, and Adam Yedidia, former employees of Bankman-Fried and his hedge fund Alameda Research, delivered testimonies shedding light on alleged fraudulent practices undertaken by Bankman-Fried in relation to FTX.
Wang, whose acquaintance with Bankman-Fried dates back to their childhood days at a summer camp, admitted in court to having authored a computer code at Bankman-Fried’s behest. This code enabled Alameda Research to withdraw an astronomical sum from customer funds, amounting to a staggering $8 billion at the time of FTX’s bankruptcy declaration in November 2022. Moreover, Wang asserted that Bankman-Fried was fully cognizant of the adverse balance and directed him to incorporate FTX’s own digital currency, FTT, into the calculation, ostensibly in an attempt to bridge the deficit.
In a startling revelation, both Wang and former Alameda Research CEO, Caroline Ellison, who shared both a professional and romantic history with Bankman-Fried, have entered guilty pleas to criminal charges. These admissions underscore the gravity of the allegations against Bankman-Fried and further fortify the prosecution’s case.
Adam Yedidia, Bankman-Fried’s former MIT roommate, corroborated the evidence presented by Wang. In June 2022, Yedidia uncovered an $8 billion shortfall at FTX attributed to loans extended to the hedge fund by the exchange. When he raised his concerns with Bankman-Fried, the cryptocurrency entrepreneur allegedly responded with an acknowledgment of their vulnerability, stating, “We weren’t bulletproof last year. We’re not bulletproof this year.” Yedidia, despite initially committing to remain with FTX, ultimately tendered his resignation in November 2022 upon discovering that Alameda had utilized customer deposits to settle debts, a move he deemed as “flagrantly wrong.”
With a succession of testimonies from such close and knowledgeable confidants of Bankman-Fried, it is increasingly apparent that the charges brought against him by authorities in the criminal case are firmly grounded in factual evidence. While the ultimate verdict in this case remains uncertain, the revelations unveiled in court this week are poised to exert a significant influence on its outcome.
Source: Yahoo Finance
