The case against former crypto magnate Sam Bankman-Fried will feature testimonies from key figures associated with him, including Caroline Ellison, the ex-CEO of hedge fund Alameda Research.
What Happened: After concluding Friday’s court session, the Department of Justice indicated that former FTX CTO Gary Wang’s testimony will wrap up on Tuesday, with plans to summon Ellison next, reported Bloomberg.
Both Ellison and Wang admitted to several fraud charges last December. The court will remain adjourned on Monday in observance of Indigenous Peoples’ Day and reconvene on Tuesday morning.
During Sam Bankman-Fried’s ongoing trial, Wang revealed that Alameda Research had special privileges on the FTX platform. This reportedly allowed the crypto hedge fund to utilize a substantial $8 billion from the exchange’s client funds.
Wang shed light on FTX’s “backstop fund,” an emergency reserve misrepresented on the platform. The actual fund amount was significantly less than displayed, with the showcased figure being entirely fake.
Wang also disclosed the existence of a concealed feature implemented in July 2019, shortly after FTX’s launch, that allowed Alameda to maintain a negative balance without having its account shut down, according to Bloomberg.
The charges against Bankman-Fried are severe, including wire fraud, securities fraud, money laundering and more. He has entered a plea of not guilty to the 12 charges. However, several former FTX executives have pleaded guilty to similar charges, including Ellison, Wang, FTX’s engineering chief Nishad Singh, and, most recently, former FTX Digital Markets CEO Ryan Salame.
If convicted, Bankman-Fried could face a maximum sentence of up to 115 years in prison.
Now Read: Sam Bankman-Fried’s High-Profile Crypto Trial Begins: Meet The 12 People Deciding His Fate
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