TL; DR
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Gary Wang just Drove 8 miles – he immediately admitted that he had committed all the crimes, so that the defense had nothing to throw at him – and then revealed the following:
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The FTX ‘Insurance Fund’ (a fund designed to protect users if/when the market was turbulent) did not own half of the assets it said it did.
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Gaz also admitted that he allowed Alameda to make unlimited withdrawals from FTX regardless of their balance.
Full story
Okay, it’s SBFTUT!
(Sam Bankman-Fried trial update time).
Here’s what you missed:
FTX co-founder Gary Wang came. in. swinging!
Seriously, this guy Drove 8 miles – he immediately admitted that he had committed all the crimes, so that the defense had nothing to throw at him – and then revealed the following:
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The FTX ‘Insurance Fund’ (a fund designed to protect users if/when the market was turbulent) did not own half of the assets it said it did.
…and the figure on the FTX website showing the Fund’s total reserves consisted entirely of:
“So it’s a fake number?” the prosecutor asked. “Yes,” G-Wang replied.
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Gaz also admitted that he allowed Alameda to make unlimited withdrawals from FTX regardless of their balance.
That is, if Alameda ran out of money, FTX would let it continue trading using customer funds.
Big kudos to Sam!