A co-founder of FTX told a court that a tweet sent by Sam Bankman-Fried assuring that the cryptocurrency exchange was “fine” was false.
Former executive Gary Wang said when Mr Bankman-Fried made the post he was aware that the firm faced an $8bn hole. It declared bankruptcy days later.
Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on trial for fraud.
Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on trial for fraud.
The 30-year-old, a friend from high school maths camp who became chief technology officer at FTX, took the stand for a second day on Friday, answering questions about spreadsheets, tweets and private chats as prosecutors probed the gap between the firm’s public face and its inner workings.
Mr Wang said Mr Bankman-Fried had repeatedly made public claims about the firm’s financial health that were not based on reality.
“FTX was not fine,” Mr Wang said. “Assets were not fine, because FTX did not have enough assets for customer withdrawals.”
FTX collapsed into bankruptcy in November last year as a flood of customers tried to withdraw their money.
Soon after, Mr Bankman-Fried was charged with fraud, money laundering, accused of stealing money from FTX customers, and lying to investors and lenders. He has denied the charges against him.
A co-founder of FTX told a court that a tweet sent by Sam Bankman-Fried assuring that the cryptocurrency exchange was “fine” was false.
Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on trial for fraud.
Former executive Gary Wang said when Mr Bankman-Fried made the post he was aware that the firm faced an $8bn hole. It declared bankruptcy days later.
The 30-year-old, a friend from high school maths camp who became chief technology officer at FTX, took the stand for a second day on Friday, answering questions about spreadsheets, tweets and private chats as prosecutors probed the gap between the firm’s public face and its inner workings.
Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on trial for fraud.
Mr Wang was testifying in court in New York, where Mr Bankman-Fried is on trial for fraud.
The 30-year-old, a friend from high school maths camp who became chief technology officer at FTX, took the stand for a second day on Friday, answering questions about spreadsheets, tweets and private chats as prosecutors probed the gap between the firm’s public face and its inner workings.
Mr Wang said Mr Bankman-Fried had repeatedly made public claims about the firm’s financial health that were not based on reality.
“FTX was not fine,” Mr Wang said. “Assets were not fine, because FTX did not have enough assets for customer withdrawals.”
FTX collapsed into bankruptcy in November last year as a flood of customers tried to withdraw their money.
Soon after, Mr Bankman-Fried was charged with fraud, money laundering, accused of stealing money from FTX customers, and lying to investors and lenders. He has denied the charges against him.
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