Gary Wang, who has previously pleaded guilty to similar charges as Sam Bankman-Fried, testified that Bankman-Fried instructed him to write code that allowed Alameda Research to have a negative balance on the FTX exchange. Wang revealed that Alameda ultimately took and spent at least $8 billion of FTX customers’ money. Wang admitted to committing crimes with Bankman-Fried, Caroline Ellison, and Nishad Singh, and he hopes for leniency in exchange for his cooperation.According to Wang, FTX had an insurance fund with a listed amount on its website, but this figure was essentially arbitrary. Additionally, FTX executives were unaware of the exact amount owed to customers due to a software bug that overstated the debt by $8 billion.Adam Yedidia, a lawyer representing FTX, stated that Alameda used FTX customer deposits to repay its lenders. Wang confirmed this, acknowledging that the funds used to repay lenders came from FTX customers.Matt Huang, a representative from Paradigm, stated that FTX presented itself as a secure custodian to investors. Bankman-Fried assured Paradigm that Alameda received no preferential treatment, but Wang later contradicted this, confirming that Alameda did receive special treatment.Huang also mentioned that Bankman-Fried or anyone at FTX never informed Paradigm that Alameda was exempt from the auto-liquidation feature.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	0
People	Adam Yedidia, Gary Wang, Nishad Singh, Matt Huang, Caroline Ellison
Companies	Paradigm, FTX, Alameda Research
Currencies	None Trading
Securities	None