Crypto mogul Bankman-Fried warned he was in a real pickleball

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Crypto mogul Bankman-Fried warned he was in a real pickleball

He was in a real pickle.

Sam Bankman-Fried admitted on Thursday that his crypto hedge fund could have trouble covering an $8 billion debt while playing 'padel' tennis, a racquet sport similar to pickleball, at a luxury Bahamian resort where he lived in a $35 million penthouse, a former close colleague testified at the accused fraudster's Manhattan trial.

Former FTX developer Adam Yedidia testified that he raised concerns about the massive amount that Bankman-Fried's trading firm, Alameda Research, owes to his cryptocurrency exchange FTX in June or July 2022.

Yedidia, 31, was recalled in Manhattan federal court on the powwow at the luxury resort of Albany, whose investors include Justin Timberlake and Tiger Woods.

Bankman-Fried then admitted that his companies were 'not bulletproof anymore,' while Yedidia testified that he looked nervous.

Yedidia also revealed that he had warned Bankman-Fried, 31, against dating Caroline Ellison - the former CEO of Alameda Research and his ex-girlfriend, who is now expected to be the feds' star witness against him.

Gary Wang, the crypto exchange's co-founder and former college roommate at MIT, admitted Thursday that Bankman-Fried instructed him to write computer code allowing Alameda to have the'special privilege' of withdrawing essentially 'unlimited' user funds on FTX, all while consumers were left in the dark.

The revelations came in day two of the former billionaire's blockbuster trial in Manhattan federal court, and as Bankman-Fried sat calmly typing away on his internet-free laptop at the defense table.

Federal prosecutors say the missing funds Yedidia brought up after the 'Padel' match with the cryptocurrency mogul had actually been stolen from FTX customers' accounts, leaving them unable to withdraw digital assets they were led to believe they owned.

As tension mounted on FTX as customers demanded to withdraw their funds, Yedidia texted Bankman-Fried a message of support.

I don't worry, I don't go anywhere, don't worry, Yedidia said.

But after two days, Yedidia resigned from the embattled company.

Yedidia, who spoke on condition of anonymity, said: The decision was made by a court.

Bankman-Fried attorney Christian Everdell sought to poke holes in the prosecution's narrative of the accused fraudster living the high life, pointing out his modest de-facto uniform of a T-shirt and shorts and that he shared the ritzy Bahamas digs with nine other people.

Everdell asked Yedidia to go to MIT with Bankman-Fried.

Yedidia responded.

Wang, the co-founder of FTX, pleaded guilty to his involvement in the scheme and is testifying as part of a cooperation agreement with prosecutors.

He's scheduled to resume his testimony Friday.