Gary Wang disclosed very important evidence in the FTX fraud case and indirectly confirmed that SBF was the main culprit behind the FTX downfall.
FTX was the second top-ranked crypto exchange but went bankrupt last year, following a report about its financial position by the Coindesk media. Allegedly FTX co-founder & former CEO Sam Bankman-Fried (SBF) misused the customer’s funds for personal benefits. Now the court trials are going on in the FTX bankruptcy & fraud case.
In the third court trial in the FTX bankruptcy fraud case, little-known FTX co-founder Gary Wang appeared in the court and said that SBF’s Alameda Research firm was able to collect any amount of funds from the FTX crypto exchange on behalf of SBF’s order.
“We (FTX executives) allowed Alameda to withdraw unlimited funds”
Wang also disclosed that by the time FTX collapsed, Alameda had withdrawn $8 billion from the platform and had drawn $65 billion on its line of credit.
According to Wang, Alameda Research was different from the other crypto platforms because other crypto companies had lines of credit in the single or double-digit millions, not in billions, unlike Alameda.
Wang also disclosed that he earned $200,000 per annum as a salary and 17% stakes in the FTX exchange. While in Alameda he was the owner of only 10% stakes. The rest of the stakes in both of these companies were in the hands of SBF.
He also explained that he was only allowed to withdraw $200,000 per year and an additional $300 million to invest in other innovative startups, to push the growth of the FTX exchange via diversified investment.
Wang & SBF know each other since high school and Wang helped SBF to establish the FTX exchange but failed to grab the popularity like SBF during the golden era of the FTX exchange. This co-founder also has been found guilty in the FTX fraud case and agreed to support the investigation in this fraud case.