In a wild twist of fate, the crypto world’s foundation trembled as the FTX empire crumbled last year, leaving its founder, Sam Bankman-Fried, standing trial for a fraud of epic proportions. The US government asserts that this disgraced crypto mogul orchestrated one of the grandest financial deceptions in history, while his defense paints him as a naive young enthusiast who swam too deep in the digital tides.
In 2022, a software bug at the exchange, arising from its unique handling of customer deposits, inflated Alameda’s holdings by $8 billion. As per Yedidia’s testimony, FTX customers deposited funds into Alameda through wire transfers, causing complexities in tracking customer debts. The customer assets, on the other hand, were used for luxury real estate, venture capital, and political funding led by SBF’s mother.
According to Ellison’s Thursday testimony, Alameda faced difficulties securing an audit. Attempts to engage accountants in 2021 and 2022 failed as the professionals declined due to concerns after examining the fund’s financial records.
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