
The trial by Sam Bankman-Fried uncovered detailed insights into the company's financial operations and its founder's personal habits.
In the morning session, testimony from Adam Yedidia, a college friend of Bankman-Fried, and a former Alameda and FTX staff member, provided a glimpse into the backend operations of FTX.
Yedidia went into his work automating customer deposits and withdrawals, revealing a flaw that inflated FTX's email protected account by a whopping $8 billion.
The prosecution shifted the court's attention to the striking contrast between FTX's original Hong Kong offices, which were extremely simple compared to the opulent offices and paddle tennis court in the Bahamas. The prosecution also presented images of the SBF's penthouse.
The defense asserted that the penthouse was a shared living arrangement, while the offices were a sign of the crypto market's success during that period. In a statement, they added, SBF did not own a yacht and drove a Toyota Corolla, claiming that he led a simple life and that the prosecution's claims of opulence were unfounded.
An anecdote about SBF's preference for sleeping on a bean bag chair in Hong Kong, which occasionally turns into naps in the Bahamas, provided a lighter moments in the matter.
Matt Huang, co-founder of Paradigm, a significant investor in FTX, was on hand at the afternoon session. His testimony highlighted his reservations about FTX's lack of a traditional governance structure and potential favorable conditions for Alameda Research.
FTX's chief technology officer, Gary Wang, admitted to financial misdeeds during his tenure at FTX during his testimony. He further discussed specific privileges allegedly granted to Alameda Research on SBF's instruction.
Judge Lewis Kaplan didn't shy away from intervening, reproaching the defense on several occasions for repetitive lines of questioning, especially during Yedidia's cross-examination.
On the day off the stand, the day was peppered with mentions of a book by Zeke Faux that narrates SBF's descent into the crypto industry.
The trial, drawing national attention, is set to continue with Wang's testimony and indications from the prosecution that subsequent witnesses will include industry heavyweights such as BlockFi CEO Zac Prince and Elan Dekel from Pinecone.
Federal prosecutors have linked a Bombardier Global 5000 and an Embraer Legacy to the cryptocurrency executive Sam Bankman-Fried.
The aircraft, which is worth $70 million, might be taken away because of its connection to Bankman-Fried's alleged illegal activities. The current cryptocurrency CEO, who is currently in jail, has denied all charges against him.
FTX's employees in the United States reportedly discovered a secret backdoor in the exchange's system that allowed Alameda Research to access customer funds.
This discovery has heightened fears and skepticism, particularly with Alameda's former CEO, Caroline Ellison, and other board members acknowledging the use of these funds.
The creditors of the now-bankrupt FTX are optimistic, as Google considers a $2B investment in AI firm Anthropic. Previously, FTX and Alameda Research had invested a combined $500 million in Anthropic.
If this new investment is fruition, it could significantly raise the value of FTX's shares, aiding in compensation for the exchange's defunct users.
The individual responsible for exploiting FTX has converted another $25 million of stolen Ethereum to Bitcoin. The conversion was executed via THORChain Router, with the hacker now having converted a total of $100 million since the hack in January 2023.
The move has coincided with the commencement of FTX founder Sam Bankman-Fried's trial, sparking speculation that an insider may have been involved in the hack.