Andrew Dietderich, an attorney for FTX, said that co-founder Gary Wang created a secret line of credit using customer funds that Sam Bankman-Fried ordered.
Sam Bankman-Fried ordered the co-founder of his cryptocurrency exchange FTX to create a “secret” backdoor that allowed his hedge fund Alameda Research to borrow $65 billion of clients’ money without their permission, according to testimony over the firm’s implosion.
Bankman-Fried had moved $10 billion between the two companies, with a further $2 billion still unaccounted for, according toSam Bankman-Fried allegedly ordered FTX co-founder Gary Wang to create the secret line of credit without permission from FTX customers.The lawyer’s testimony corroborates allegations made by the Commodity Futures Trading Commission, the independent federal agency which regulates derivatives such as futures and swaps.
Wang and Ellison have both pleaded guilty to federal charges including fraud and conspiracy. They are cooperating with investigators.
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