FTX’s former general counsel, Can Sun, has testified in court about the events surrounding the wave of withdrawals in November 2022. He revealed that founder Sam Bankman-Fried asked him to come up with “legal justifications” for the missing billions in customer deposits. This revelation complicates Bankman-Fried’s defense that he believed the appropriation of funds in Alameda Research was justified. Sun also testified that FTX was missing around $7 billion in customer deposits and was owed billions by its sister company, Alameda Research. Bankman-Fried allegedly sought an investment fund from Apollo Global Management to cover the overwhelming customer withdrawals. However, when the firm asked for FTX’s balance sheets, it became apparent that the exchange was missing funds. Sun stated that Bankman-Fried asked him to come up with a legal justification for the missing funds, but he was unable to do so. FTX eventually filed for bankruptcy. Bankman-Fried has pleaded not guilty to fraud and conspiracy charges and could face decades in prison if found guilty. The recent revelation undermines his defense that he acted in good faith.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Sam Bankman-Fried, Mark Cohen, Nishad Singh, Can Sun
Companies	Inc., Apollo Global Management, FTX, Nishad Singh, Alameda Research
Currencies	None
Securities	None