Gary Wang – who’s up to now pleaded responsible to equivalent fees to what Bankman-Fried faces – testified that Bankman-Fried directed him to put in writing code permitting Alameda Analysis to have a destructive steadiness on FTX way back to July 2019.

In the long run Alameda took and spent a minimum of $8 billion of FTX shoppers’ cash, Wang stated.

Wang opened by way of pronouncing he dedicated crimes, did so with Bankman-Fried, Caroline Ellison and Nishad Singh and that he was once hoping for no prison time because of his cooperation.

FTX had an insurance coverage fund with an quantity indexed on its web site, however this quantity was once necessarily a randomly generated determine, Wang stated.

For some time, FTX executives didn’t in reality know the way a lot Alameda owed its shoppers as a result of a tool trojan horse, Adam Yedidia stated. The trojan horse overstated the quantity owed by way of $8 billion (necessarily two times the true quantity).

Alameda used FTX buyer deposits to pay again its lenders, Yedidia stated. Wang later showed that Alameda had returned lenders’ price range and that those price range “got here from FTX shoppers.”

FTX introduced itself as a protected custodian to traders like Paradigm, Matt Huang stated.

In a similar fashion, Bankman-Fried informed Paradigm that Alameda had no preferential remedy, Huang stated. Wang later stated Alameda did obtain particular remedy (see level 1).

At no level did Bankman-Fried or any person at FTX inform Paradigm that Alameda was once exempt from its auto-liquidation characteristic, Huang stated.

Paradigm has marked its $278 million funding in FTX to 0, Huang stated.