Gary Wang Testifies, Says Alameda had Unlimited Access to Funds
- Former FTX executive Gary Wang testified in the trial of Sam Bankman-Fried on October 5.
- “We allowed Alameda to withdraw unlimited funds,” said the ex-chief technology officer.
- His turn came after testimonies from developer Adam Yedidia and Paradigm co-founder Matt Huang.
- Gary Wang and Caroline Ellison had cut a deal with the prosecutors in December 2022.
Gary Wang, the co-founder of the now-bankrupt crypto exchange FTX, has testified during the trial of Sam Bankman-Fried, also known as SBF in the crypto space, confirming that the exchange’s sister trading firm, Alameda Research, had access to all of the clients’ funds. He stated that SBF committed crimes in partnership with himself, Nishad Singh, and Caroline Ellison.
While being called forth to testify on October 5, Gary Wang, the former chief technology officer at FTX, revealed that the management “allowed Alameda to withdraw unlimited funds” in response to a question asked by Assistant United States Attorney Danielle Sassoon.
It is important to note that the funds that Alameda had access to belonged to the customers of the crypto exchange, which SBF spent as his own. The co-founder addressed the courtroom after hearing testimonies from former FTX developer Adam Yedidia and Paradigm co-founder Matt Huang.
“[Sam handled] speaking to the media, lobbying, and talking with investors. I just coded […] in the end it was Sam’s decision to make [regarding any disagreements],” said Gary Wang.
October 5 was the third day of Bankman-Fried’s criminal trial, in which he pleaded not guilty to all the charges despite the entire crypto industry considering the opposite. The witnesses have mostly spoken about the connection that SBF’s crypto exchange had with Alameda Research.
According to a report from the Wall Street Journal (WSJ), the employees at the exchange knew about the backdoor between Alameda and FTX and even notified Nishad Singh about the same, who did not bother taking action.
Additionally, the testimony from Gary Wang is part of a deal between the prosecutors and himself in December 2022. More importantly, SBF’s former girlfriend, Caroline Ellison, and Singh will also be testifying in the courtroom as the trial progresses.
As per an earlier report from BitcoinWisdom, US prosecutors claim Bankman-Fried purchased jets via fraudulent means and have pushed to seize the assets belonging to the disgraced crypto entrepreneur. Prosecutors said the former cryptocurrency mogul stole billions of dollars in cash and crypto from his customers and made misleading comments to investors.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
