#FTX #SBF #FTT

In court today, Gary Wang, co-founder of FTX & Alameda, testified that Sam Bankman-Fried allowed Alameda to dip into FTX customer funds as early as late 2019 / early 2020.

Gary Wang: So at the very end of 2019 or early 2020, I did a database query to check what Alameda's balances were at the time. When I checked, it was negative by more than what FTX's trading revenue was at the time.

Prosecutor: What was the implication of Alameda having a negative balance in excess of FTX's revenue?

Gary Wang: It means that Alameda was taking customers' money.

Prosecutor: What did the defendant (Sam Bankman-Fried) say?

Gary Wang: He asked me, when I was doing this calculation, if I was including the value of Alameda's FTT, which was held in a separate account. He asked me if I was also including that FTT.

Prosecutor: To break this down a little bit, you said Alameda's account was negative in excess of revenue. What was FTX's revenue at the time?

Gary Wang: It was around $150 million.

Prosecutor: What was Alameda's negative balance at the time?

Gary Wang: It was more than that. It was more than that. I think it was around 200 million.

Prosecutor: When you told the defendant that Alameda had a negative balance, what did he tell you to include in the balance calculation?

Gary Wang: He asked me to include the value of all of Alameda's accounts on FTX and include the value of the FTT that was in those accounts.