SBF Fraud Trial Latest Update: Co-Founder Reveals Shocking Dynamics Between Alameda And FTX

Sam Bankman-Fried's third day of fraud trial ended with testimony from another long-time friend and ally, Gary Wang, the co-founder of FTX and Alameda Research, who dropped explosive revelations, including the shocking dynamics between the crypto hedge fund and the crypto derivatives exchange – both businesses now defunct.

Wang, who was also the former chief technology officer at FTX, testified on the stand Thursday that he, Bankman-Fried, Caroline Ellison, the former CEO of Alameda Research, and Nishad Singh, the FTX director of engineering, committed wire fraud, securities fraud, and commodities fraud.

He also revealed that Bankman-Fried handled duties involving facing the public, talking to the media, and lobbying, while his role was limited to coding.

"We allowed Alameda to withdraw unlimited funds," Wang told Assistant United States Attorney Danielle Sassoon, adding, "[Sam handled] speaking to the media, lobbying, talking with investors. I just coded [...] in the end it was Sam's decision to make [regarding any disagreements]."

"Speaking to the media, lobbying, talking with investors. I just coded," Wang said when asked by Sassoon, "What did Sam do that you didn't?"

Like Adam Yededia, Wang was a long-time friend of Bankman-Fried, and their friendship dates back to high school.

Even though Wang co-founded the crypto empire, he tried to maintain a low profile even during the hay days of FTX, which was the exact opposite of what Bankman-Fried did.

Based on Wang's testimony, it appeared that Bankman-Fried enabled Alameda Research to execute orders faster on FTX, be allowed to maintain negative balances, and have access to unlimited withdrawal of funds.

The co-founder, who was born in China, also went to the Massachusetts Institute of Technology (MIT) like Bankman-Fried, testified that Alameda Research had withdrawn $65 billion from its credit lines and $8 billion from FTX.

He also disclosed that he owns 10% and 17% stakes in Alameda Research and FTX, respectively. While Bankman-Fried holds 90% and 65% of the respective crypto businesses.

Wang, who previously worked at Google before co-founding Alameda Research, recalled that he was allowed to withdraw $200,000 from the company to build a house and was allowed to access up to $300 million that he could use to invest in other startup businesses.

The prosecution also asked Wang why Alameda has the term research in its name, to which he responded, "Sam said it would be easier to get a bank account."

Trial from court reporting organization Inner City Press (ICP) shared that Bankman-Fried did not immediately leave the courtroom and returned to MDC-Brooklyn, citing "inside sources."

"After SBF trial testimony ended at 4:25 pm, Inner City Press' inside sources say Bankman-Fried wasn't driven out of the courthouse and back to MDC-Brooklyn until 6 pm - so, an hour and a half with his lawyers," ICP reported.

Wang pleaded guilty and agreed to cooperate with authorities in the FTX investigation last December.

"Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness," Wang's lawyer Ilan Graff said in a statement.