Crypto founder Sam Bankman-Fried's third day of fraud trial ends with explosive revelations

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Crypto founder Sam Bankman-Fried's third day of fraud trial ends with explosive revelations

Sam Bankman-Fried's third day of fraud trial ended with testimony from Gary Wang, the co-founder of FTX and Alameda Research, who dropped explosive revelations, including the shocking dynamics between the cryptocurrency hedge fund and the crypto derivatives exchange, both businesses now defunct.

The former chief technology officer of FTX testified yesterday that he, Bankman-Fried Caroline Ellison, the former CEO of Alameda Research, and Nishad Singh, the FTX director of engineering, committed wire fraud, securities fraud, and commodities fraud.

Bankman-Fried was also known for his handling of duties involving facing the public, talking to the media, and lobbying, while his role was limited to coding.

Wang, like Bankman-Fried, was a longtime friend of Bankman-Fried, and their friendship dates back to high school.

Even though Wang co-founded the crypto empire, he was trying to maintain a low profile even during the hay days of FTX, which was the exact opposite of what Bankman-Fried did.

Bankman-Fried allowed Alameda Research to execute orders faster on FTX, be allowed to maintain negative balances, and have unlimited withdrawal of funds.

The co-founder, who was born in China, also went to Massachusetts Institute of Technology, where she testified that Alameda Research had withdrawn $65 billion from its credit lines and $8 billion from FTX.

He also revealed that he owns a controlling stake in Alameda Research and FTX, both of which are owned by FTX. Bankman-Fried holds 90% and 65% of the respective crypto businesses.

He had been working at Google before co-founding Alameda Research, and he recalls that he was allowed to withdraw $200,000 from the company to build a house and was allowed to access up to $300 million to invest in other startup businesses.

Inside sources say Bankman-Fried wasn't driven out of the courthouse and back to his MDC-Brooklyn until 6 PM - so an hour and a half with his lawyers, ICP reported.

Wang pleaded guilty and agreed last December to cooperate with authorities in the FTX investigation.

Wang's lawyer, Ilan Graff, said in a statement.