FTX co-founder Gary Wang testified in court that the “Insurance Fund” listed by the exchange was actually a fake amount generated using a random number generator. During the trial of former FTX CEO Sam Bankman-Fried, Wang revealed that the fund, which was supposed to contain $5.5 million and 5 million FTT tokens, did not actually have any FTT and the USD amount was lower than reported. Wang explained that the fake USD number was calculated by multiplying the daily volume at FTX by a random number around 7500 and then dividing the result by 1 billion. FTX filed for bankruptcy last year after its native asset collapsed and customer withdrawals were halted. Bankman-Fried is facing charges related to defrauding customers, mishandling funds, and making illegal political donations, which could result in a prison sentence of over 100 years if convicted. Wang, who pleaded guilty to federal charges in December, has been cooperating with the prosecution and testifying against Bankman-Fried.

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

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	0
People	Gary Wang, Sam Bankman-Fried
Companies	FTX, BitMEX Research, The Daily HODL, FTT
Currencies	FTX
Securities	None