Gary Wang, the co-founder and CTO of FTX, has provided damaging testimony during the ongoing trial of Sam Bankman-Fried. Wang revealed that FTX’s $100 million insurance fund for 2021 was a fabrication and did not hold any of the exchange’s FTT tokens as claimed. This testimony aligns with the suspicions of the cryptocurrency community, who have uncovered evidence of software code allegedly used by FTX to manipulate the insurance fund and deceive the public. Wang admitted that FTX used concealed Python code to misrepresent the value of the fund, which often fell short of covering losses. In one instance, a trader exploited a bug in FTX’s margin system, resulting in massive losses for the exchange. Wang also disclosed that the insurance fund figure presented on FTX’s platform was completely fabricated and did not align with the actual data stored in the database. When the fund nearly depleted, Wang claimed he was instructed to assign the loss to Alameda to conceal it. Wang and Bankman-Fried, who both attended MIT and were involved in Alameda Research, had a falling out, with Wang accusing Bankman-Fried of encouraging fraudulent practices. Wang, along with Singh and Ellison, entered a guilty plea to wire fraud and other criminal offenses, while Bankman-Fried faces charges including conspiracy to commit money laundering and wire fraud.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 6 |
| People | Nishad Singh, Caroline Ellison, Sam Bankman-Fried, Gary Wang |
| Companies | Tapchibitcoin, Alameda Research, BitMex Research, Massachusetts Institute of Technology, FTX |
| Currencies | FintruX, Bitcoin, US Dollar |
| Securities | None |
