Wang made the admission during the trial of a fraud case involving Bankman-Fried.
Wang, who pleaded guilty in December and agreed to cooperate, said he altered the cryptocurrency exchange’s backend code in 2019, allegedly at Bankman-Fried’s direction. The resulting “special advantage” allowed Alameda Research, an affiliated hedge fund, to borrow essentially unlimited funds from FTX customers. By fall 2022, Alameda had borrowed as much as $14 billion from FTX, an amount it couldn’t repay.
Wang said they committed various financial crimes in connection with overseeing the now-bankrupt FTX crypto exchange.
Wang provided an explanation consistent with the government's allegations and corroborated media reports about the special benefits FTX created and then concealed for Alameda Research.
Prosecutors argue that FTX diverted client accounts directly into bank accounts controlled by Alameda, which were not officially affiliated with FTX. In fact, the two companies were both created by Bankman-Fried.
The U.S. government says FTX misled customers about the whereabouts of their funds and how they were being used.
Meanwhile, Wang said Alameda was allowed to make "unlimited withdrawals" from FTX customers.
Under questioning Friday by Assistant U.S. Attorney Nicolas Roos, Wang testified about the secret mechanisms that permitted funds to flow from FTX to Alameda. Wang said Bankman-Fried asked that a backend “allow negative” balance feature be added for Alameda. Wang said most users were only able to draw from amounts they had deposited.
When asked by Assistant U.S. Attorney Nicolas Roos if the profits were ever disclosed to clients or investors, Wang replied that they were not.
In more than four hours on the stand, Wang provided an account of FTX’s last days and details on how he and Bankman-Fried, 31, allegedly implemented a multibillion-dollar scheme that made the exchange’s collapse inevitable.
Wang’s testimony goes to the heart of federal prosecutors’ case against Bankman-Fried. They accuse him of orchestrating a scheme to fraudulently transfer funds to Alameda, creating a massive shortfall that led to both companies’ bankruptcies. Wang is one of the government’s three star witnesses, along with former Alameda Chief Executive Officer Caroline Ellison, who is also Bankman-Fried’s ex-girlfriend, and former FTX engineering chief Nishad Singh. Prosecutors said Friday that Ellison would testify next week.
Meanwhile, Bankman-Fried has maintained his innocence of the fraud charges against him.
Bankman-Fried, once hailed as the public face of the crypto industry, was charged with two counts of wire fraud and six counts of conspiracy for his role in what one federal prosecutor called the largest fraud.
In addition to Alameda Research, he is accused of stealing FTX client funds for the campaigns of politicians from both parties to influence public policy.
Scanner security results Scanner security results now after bankruptcy and corruption.
FTT Token Successfully repaired the previous version of the controllable balance changed to uncontrollable.
Security results of token security analysis The security results of the token security analysis have been changed by the SEC
No contract owner address created withdrawal free without limit and risk not suspicious by the SEC government and evade police detectives can Deleting proof of smart contract withdrawal Can just withdrawn community, co-founder, CEO and terrorism without objective clear Can make Token So corruption And bankrupt.
No found mintable Derived from POS and Dpos The goal is to increase total supply So market capital Can go bankrupt and corrupt and easily practice money laundering.
"It's heartbreaking to think about all the external risks associated with cryptocurrencies. Market volatility, cybercrime, digital fraud - they all threaten the security of our investments. We must be vigilant and make sure we understand external risk scores and ratings to protect ourselves." 
