In a high-stakes hearing, FTX co-founder Gary Wang took the stand to testify against former CEO Sam Bankman-Fried (SBF). But his rapid-fire speech caused Judge Lewis Kaplan to intervene. The judge asked Wang to clarify the proceedings by asking him to slow down during his testimony.
Express testimony process continues in the FTX case
As you know, the crypto exchange FTX collapsed in November 2022. The case involving multiple fraud charges stemming from its multibillion-dollar collapse is attracting a lot of attention. SBF vehemently disputes these charges, maintaining its innocence.
Wang’s testimony focused on the bank fraud accusations and the nature of FTX’s activities. Notably, FTX’s investment firm states that there are no restrictions on the amount of money Alameda Research can access. Wang explained that Alameda allows unlimited withdrawals. In addition, he emphasized the intention behind naming SBF “Alameda Research.” He also explained that the word “Research” was deliberately chosen due to its professional connotations. This information was obtained from an audio recording played during the hearing.
Gain access through the back door
Judge Kaplan asked where these privileges were located and how they bypassed the so-called security measures at FTX. Wang simply replied that it was “in the code.” FTT, the native token of the FTX exchange, experienced a sharp decline from $26.10 to $1.57 in early November 2022 following the exchange’s crash. As of now, FTT is worth $1.22. In fact, when we look at it as cryptokoin.com, even this decline in price summarizes everything.
Opposing responsibilities also draw attention during the case. Accordingly, during the interviews, Wang emphasized the differences between his and SBF’s roles in the FTX exchange. Wang was primarily looking at coding. On the other hand, SBF handled a variety of responsibilities, including media engagement, lobbying and investor relations.
Compensation and equity
When asked what his compensation was on the FTX exchange, Wang explained that it was $200,000. However, there is an important fact here, as acknowledged by Judge Kaplan. Wang also once held a significant 17% equity stake in the company, a fact that earned him the title of “billionaire.”
FTX trial continues. The cryptocurrency world is also wondering what will happen at the end of the hearings. However, there is a clear truth here. The decision that will be made at the end of the litigation process will be up to everyone. The decision and outcome will significantly affect the future of both individuals and the crypto industry. As a result, perhaps it will contribute to the further strengthening of the field.
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