FTX co-founder Wang Confesses To Committing Fraud With Sam Bankman-Fried

FTX co-founder Wang Confesses To Committing Fraud With Sam Bankman-Fried

According to CNN, the co-founder of FTX, Gary Wang has confessed to the court that he committed wire fraud with co-founder, Sam Bankman-Fried. 

In compliance with an earlier plea deal, he said that he was guilty of wire fraud, securities fraud, and commodities fraud and that he committed those crimes under the direction of Bankman-Fried.

Bankman-Fried, known as SBF, has pleaded not guilty to seven counts of fraud and conspiracy.

The government’s case claims that Sam defrauded investors and clients of their hard-earned investments all year long. 

In an opening statement, lead defense attorney Mark Cohen has tried to dismiss these claims, presenting them as more of bad business. 

They have not had the opportunity to cross-examine Wang or call their witnesses.

FTX’s strange financial ties to Alameda are a central issue in the case.

Another witness, Yedidia narrated a conversation with Bankman-Fried in which Yedidia alerted SBF about a concerning $8 billion liability hanging over Alameda’s (A sister crypto company that the government that Sam was funding with fraud money) balance sheet. 

The $8 billion represented the money that FTX customers would be owed if they decided to withdraw their deposits, Yedidia said.

Unlike typical customers of FTX — a platform for individual investors and institutions to trade crypto — Alameda was allowed to run a negative balance and make “unlimited withdrawals” from FTX customers, Wang said.