{"id":13525,"date":"2023-10-06T05:14:06","date_gmt":"2023-10-06T05:14:06","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=13525"},"modified":"2023-10-06T05:14:07","modified_gmt":"2023-10-06T05:14:07","slug":"sbf-trial-day-3-former-ftx-cto-claims-sbf-granted-alameda-research-special-privileges-during-witness-testimony","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13525","title":{"rendered":"SBF Trial Day 3 \u2013 Former FTX CTO claims SBF granted Alameda Research &#8216;special privileges&#8217; during witness testimony"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n <\/p>\n<p>The third day of the trial against Sam Bankman-Fried (SBF) unveiled deeper insights into the company\u2019s financial operations and its founder\u2019s personal habits.<\/p>\n<p>In the morning session, testimony from Adam Yedidia, a college acquaintance of Bankman-Fried and a former Alameda and FTX staff member, provided a glimpse into the backend operations of FTX.<\/p>\n<p>Yedidia delved into his work automating customer deposits and withdrawals, revealing a glitch that inflated FTX\u2019s [email\u00a0protected] account by a whopping $8 billion.<\/p>\n<p>The prosecution shifted the court\u2019s attention to the stark contrast between FTX\u2019s original Hong Kong offices, which were extremely simple compared to the opulent offices and paddle tennis court in the Bahamas. Emphasizing signs of opulence, the prosecution also put forward images of SBF\u2019s penthouse.<\/p>\n<p>The defense countered the opulence argument by claiming that the penthouse was a shared living arrangement, while the offices were a sign of the crypto market\u2019s success during that period. They added that SBF did not own a yacht and drove a Toyota Corolla, arguing that he led a simple life and the prosecution\u2019s claims of opulence were unfounded.<\/p>\n<p>An anecdote about SBF\u2019s preference for sleeping on a bean bag chair in Hong Kong, which occasionally turned into naps in the Bahamas, provided a lighter moment in the proceedings.<\/p>\n<p>The afternoon session was marked by Matt Huang\u2019s testimony, co-founder of Paradigm, a significant investor in FTX. Huang\u2019s testimony highlighted his concerns about FTX\u2019s lack of a traditional governance structure and potential favorable conditions for Alameda Research.<\/p>\n<p>Gary Wang, FTX\u2019s Chief Technology Officer, admitted to financial misconduct during his tenure at FTX during his testimony. He further discussed specific privileges allegedly granted to Alameda Research on SBF\u2019s instruction.<\/p>\n<p>Judge Lewis Kaplan didn\u2019t shy away from intervening, reproaching the defense on several occasions for repetitive lines of questioning, especially during Yedidia\u2019s cross-examination.<\/p>\n<p>Off the stand, the day was peppered with mentions of a book, \u201cNumber Go Up\u201d by Zeke Faux, which narrates SBF\u2019s descent in the crypto industry.<\/p>\n<p>The trial, drawing national attention, is set to continue with Wang\u2019s testimony and indications from the prosecution that subsequent witnesses will include industry heavyweights like BlockFi CEO Zac Prince and Elan Dekel from Pinecone.<\/p>\n<h2><em>In other news\u2026<\/em><\/h2>\n<p>Private Jets Worth $70M at Risk in Bankman-Fried Trial<\/p>\n<p>Federal prosecutors have targeted two private jets, a Bombardier Global 5000 and an Embraer Legacy, linked to cryptocurrency executive Sam Bankman-Fried.<\/p>\n<p>The aircraft, worth a combined $70 million, might be confiscated due to its connection to alleged illicit activities by Bankman-Fried. The crypto executive, who is currently on trial, has denied all charges against him.<\/p>\n<p>FTX Exchange\u2019s Hidden Backdoor Exposed<\/p>\n<p>US-based employees of FTX reportedly discovered a secret backdoor in the exchange\u2019s system that allowed Alameda Research to access customer funds.<\/p>\n<p>This revelation has raised concerns and skepticism, especially with Alameda\u2019s former CEO, Caroline Ellison, and other executives acknowledging the use of these funds.<\/p>\n<p>FTX Creditors Eye Google\u2019s Potential Anthropic Investment<\/p>\n<p>Creditors of the now-bankrupt FTX are optimistic as Google considers a $2B investment in AI firm Anthropic. Previously, FTX and Alameda Research had invested a combined $500M in Anthropic.<\/p>\n<p>If this new investment comes to fruition, it could significantly raise the value of FTX\u2019s stake, aiding in compensating the exchange\u2019s defunct users.<\/p>\n<p>FTX Exploiter Converts Stolen ETH to BTC<\/p>\n<p>The individual responsible for exploiting FTX has converted another $25M of stolen Ethereum to Bitcoin. The conversion was executed via THORChain Router, with the exploiter now having converted a total of $100M since the hack in January 2023.<\/p>\n<p>These moves have coincided with the commencement of FTX founder Sam Bankman-Fried\u2019s trial, sparking speculation that an insider may have been involved in the hack.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/sbf-trial-day-3-former-ftx-cto-claims-sbf-granted-alameda-research-special-privileges-during-witness-testimony\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The third day of the trial against Sam Bankman-Fried (SBF) unveiled deeper insights into the company\u2019s financial operations and its founder\u2019s personal habits. In the morning session, testimony from Adam Yedidia, a college acquaintance of Bankman-Fried and a former Alameda and FTX staff member, provided a glimpse into the backend operations of FTX. Yedidia delved [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-13525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13525"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13525\/revisions"}],"predecessor-version":[{"id":13527,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13525\/revisions\/13527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13526"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}