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Latest update — Former FTX CEO Sam Bankman-Fried trial [Day 4]

Oct. 5: Gary Wang details relationship between FTX and Alameda Research

  • In 4 hours of testimony, Gary Wang provided details about the relationship between FTX and Alameda Research.
  • Alameda received special privileges from FTX, including an unlimited negative balance, a line of credit of $65 billion, and an exemption from the liquidation engine.
  • The commingling of funds and problems between the companies evolved over time.
  • Bankman-Fried allegedly told Wang and Caroline Ellison to add a multimillion-dollar deficit to Alameda’s balance sheet instead of keeping it on FTX.

Oct. 5: Yedidia cross-examination, witness testimonies in focus

  • A liability of $8 billion from Alameda to FTX was the focus of the cross-examination of Adam Yedidia.
  • Yedidia was aware of the funds sent to Alameda’s account but didn’t see it as a concern initially.
  • Yedidia resigned after learning about the liability amount.
  • The defense highlighted FTX’s fast growth and Bankman-Fried’s role in overseeing the company.

Oct. 4: DOJ and Bankman-Fried’s defense state their arguments

  • The DOJ portrayed Bankman-Fried as someone who deliberately lied to investors and used Alameda to “steal customers’ funds.”
  • The defense argued that Bankman-Fried made business decisions that didn’t work out and denied the existence of secret transactions.
  • Jury heard testimonies from Mark Julliard and Adam Yedidia.

Oct. 3: SBF trial begins

  • Bankman-Fried’s trial began with jury selection.
  • He is charged with conspiracy and fraud in connection with the collapse of FTX.
  • The defense denied secret transactions between Alameda and FTX and highlighted the role of Binance in FTX’s collapse.

December: SBF arrested

  • Bankman-Fried was arrested in the U.S. after being charged and consented to extradition.
  • He had previously been under house arrest and had his bail revoked for allegedly sharing personal papers of a witness.

November: FTX collapses

  • Allegations arose about FTX’s relationship with Alameda Research, leading to a run on FTX.
  • Bankman-Fried announced an agreement with Binance, but it fell through.
  • FTX filed for bankruptcy, and Bankman-Fried resigned as CEO.

SBF and FTX before the fall

  • Bankman-Fried was respected in the crypto community and gained a reputation as a philanthropist.
  • FTX had a $32 billion valuation and appeared to be in good financial condition.
  • Bankman-Fried was politically active and supported candidates financially.
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