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In an ongoing trial, FTX co-founder Gary Wang testified against the company’s founder, Sam Bankman-Fried, alleging both of them participated in financial misconduct before the collapse of their cryptocurrency trading platform.
Wang, who held positions as the chief technical officer at FTX and shared ownership in Alameda Research, claimed they illegally withdrew $8 billion from FTX funds under Bankman-Fried’s guidance.
Wang’s statements are critical to the prosecution’s attempt to demonstrate that Bankman-Fried misappropriated billions from investors for personal gain, including high-end property acquisitions and substantial political donations.
Detained since August, Bankman-Fried, who has denied all charges, was extradited from the Bahamas to face trial in the US last December. Defense attorneys argue his actions were taken to save the company after the cryptocurrency market crash. Further detailing the internal workings, Wang mentioned the unique programming in the computer code, overseen by Bankman-Fried, that permitted Alameda Research to maintain an enormous line of credit.
These revelations come as former key executives cooperate with authorities, potentially in exchange for lighter sentences. The trial, anticipated to last six weeks, will also feature testimonies from other ex-executives and former FTX employees.