
The case against former cryptocurrency magnate Sam Bankman-Fried will feature testimonies from key players associated with him, including Caroline Ellison, the ex-CEO of hedge fund Alameda Research.
After concluding Friday's court session, the Department of Justice said former FTX CTO Gary Wang's testimony would wrap up on Tuesday, with plans to summon Ellison next.
Ellison and Wang admitted to a number of fraud charges last December. The court will remain adjourned on Monday for observance of Indigenous Peoples' Day and resume on Tuesday.
In Sam Bankman-Fried's ongoing trial, Wang told CBS New York that Alameda Research had special privileges on the FTX platform. The cryptocurrency hedge fund reportedly utilized a substantial $8 billion from the exchange's client funds.
Wang shed light on FTX's 'backstop fund,' an emergency reserve misrepresented on the platform. The actual fund amount was significantly less than presented, with the featured figure, which was completely fake.
In July 2019, Wang also revealed the existence of a hidden feature, implemented just after FTX's launch, that allowed Alameda to maintain a negative balance without having its account shut down, according to Bloomberg.
Bankman-Fried is facing serious charges, such as wire fraud, securities fraud, and money laundering. He has admitted not guilty to 12 counts of misdemeanor assault and misdemeanor assault. Many former FTX executives have pleaded guilty to similar charges, including Ellison, Wang, FTX's engineering chief Nishad Singh and, most recently, former FTX Digital Markets CEO Ryan Salame.
Bankman-Fried faces up to 115 years in prison if convicted.
Now read: Sam Bankman-Fried's high-profile crypto trial: The 12 people debating his death.
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