
Alameda Research enjoyed unique access on the FTX platform, enabling the crypto hedge fund to utilize $8 billion of the exchange's client funds, revealed Gary Wang, the former chief technology officer.
Wang, who was instrumental in founding both companies alongside Bankman-Fried, said in July 2019, that a covert feature was implemented in July 2019, shortly after FTX's inception.
Alameda's exclusive feature allowed FTX's account balance to dip below zero.
This comes ahead of the upcoming Benzinga's Future of Digital Assets conference, where such topics are expected to be discussed deeply in depth.
Wang, previously known as FTX's reserved CTO, is among the first of several insiders who, after admitting to financial wrongdoings, are now testifying against Bankman-Fried in his ongoing fraud trial.
As per the government, he described the intricate financial setups that facilitated the illegal appropriation of billions from FTX's clientele.
For Alameda's accounts, Wang elaborated on a specific code, 'allow negative equals zero', tailored for Alameda's accounts, which was commissioned by Bankman-Fried to finance expenses related to FTX's FTT token.
The actual fund was considerably less, contrasted to the listed amount on FTX's website, with Wang noting that the displayed figure was a mere fabrication.
Alameda's credit line also extended because of its position as FTX's primary market maker.
Bankman-Fried's parents were in the courtroom, with the mother occasionally glancing at her son. Some jurors took notes during Wang's testimony, while others simply observed.
The day began with the defense counsel's brief admission of a juror's brief interaction with one of Bankman-Fried's attorneys.
The judge emphasized to the jury that any casual greetings exchanged with trial participants should not be misconstrued if not reciprocated.
For allegedly involuntary fraud charges, Wang pleaded guilty to multiple fraud charges last December. At the exclusive event, the Future of Digital Assets, meet and engage with transformative Digital Asset and Crypto business leaders and investors.