Gary Wang revealed very important evidence in the FTX fraud case and indirectly confirmed that SBF was the main culprit behind the demise of the FTX.
FTX was the second-highest ranked crypto exchange, but went bankrupt last year, following a report on its financial position by Coindesk media. FTX co-founder and former CEO Sam Bankman-Fried (SBF) reportedly misused customer money for personal benefits. Now, litigation is underway in the FTX bankruptcy and fraud case.
In the third trial in the FTX bankruptcy fraud case, little-known FTX co-founder Gary Wang appeared in court and said that SBF’s Alameda Research company was able to collect any amount of money from the FTX crypto exchange on behalf of SBF’s command. .
“We (FTX executives) allowed Alameda to withdraw unlimited funds”
Cheek said
Wang also disclosed that by the time FTX collapsed, Alameda had withdrawn $8 billion from the platform and drawn down $65 billion on its line of credit.
According to Wang, Alameda Research differed from the other crypto platforms because other crypto companies had lines of credit in the single or double digits of millions, not billions, unlike Alameda.
Wang also disclosed that he earned $200,000 per year as salary and 17% stake in the FTX stock exchange. While in Alameda, he owned only 10% of the stock. The rest of the interests in both companies were held by SBF.
He also explained that he was only allowed to withdraw $200,000 per year and another $300 million to invest in other innovative startups, to fuel the growth of the FTX exchange through diversified investments.
Wang and SBF have known each other since high school, and Wang helped SBF establish the FTX fair, but failed to gain popularity like SBF during the golden era of the FTX fair. This co-founder has also been found guilty in the FTX fraud case and has agreed to support the investigation into this fraud case.
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