FTX Co-Founder Gary Wang to Testify Against SBF
Gary Wang, FTX co-founder and the former CTO, participated in the trial against SBF as a witness. He testified against the former CEO of now defunct crypto exchange. His testimony revealed that he assisted SBF with secretly transferring customer funds from FTX to Alameda Research.
He also confessed that he assisted the former CEO with granting special access to consumer deposits for account holders on the FTX exchange.
Role of Alameda Research in FTX’s Bankruptcy
It is worth noting that Wang is the first accused in the FTX case who pleaded guilty to the charges brought by the prosecution. Wang has told the court that the firm granted special privileges to Alameda Research while working for FTX.
In this manner, the firm was able to withdraw considerable amount of funds from the trading forum. He admitted that the firm lied to the public about these events. During a cross questioning session from prosecution, Wang told media that these funds were facilitated from FTX account holders.
Wang’s Testimony Makes the Case Against SBF Stronger
The recent testimony by Wang has added more weight to the trial of SBF. The new change will allow prosecution to make a stronger case against SBF. Wang opted for a plea bargain in December admitting to fraud and criminal conspiracy charges.
He also testified against Chief Engineer Nishad Singh about altering code of the exchange in July 2019. This code edit allowed Alameda to indicate negative balance without going into liquidation.
His testimony supports the claims by federal agents that SBF misappropriated billions of dollars of funds from customer to support Alameda. In the process he misled investors and consumers about financial separation of FTX from Alameda.
Meanwhile, SBF lawyers have claimed in the court that the former executive did not steal funds on purpose rather transferred the burden on bad risk management and market volatility.
ThorSwap Halts Services Citing Suspicious FTX Hacker Activities
ThorSwap is a decentralized exchange based on ThorChain. The platform has announced that it is temporarily halting services on account of suspicious account activities. Some of the unwarranted trades have been traced back to FTX hackers leading to loss of $600 million from the exchange within a short period after the firm filed for Chapter 11 bankruptcy.
Lookonchain a blockchain tracking service updated that hackers swapped $124 million in ETH for trust-minimized Bitcoin or tBTC shortly after ThorSwap halted services.
These funds were processed through tBTC issuer Threshold Network into the Bitcoin network. FTX hackers that are still unidentified are said to have stolen around $179 million in ETH. ThorChain is a cross-chain DEX that enables swaps between various blockchain networks.
Using the platform hackers were able to move massive amounts of ETH into BTC. 50% of ETH reserves processed through ThorSwap during the last 4 months have been traced back to hackers as blockchain sleuth identifying as Tay.
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