Gary Wang, co-founder and former chief technology officer of FTX, testified against Sam Bankman-Fried in a New York court last Friday. Wang said on the stand that Bankman-Fried knew that FTX faced an $8 billion deficit when he publicly tweeted that FTX was “fine”. 

According to Wang, “Assets were not fine because FTX did not have enough assets for customer withdrawals.”

FTX declared bankruptcy a few days after Bankman-Fried made his post. 

Wang testified that he and Bankman-fried discussed the financial issues faced by FTX because of Alameda’s withdrawal of customer funds. He also said that by the end of 2019, Alameda withdrew more than FTX’s fees for customer trading. 

In June 2022, Wang said that FTX executives tried to calculate Alameda’s debts to FTX after Bankman-Fried asked for a review. Wang estimated the amount to be $11 billion. 

The bulk of the cases against Bankman-Fried are based on the alleged misuse of FTX funds through Alameda, a crypto trading company he founded. The Department of Justice said Bankman-Fried funneled FTX customer funds to Alameda, which were then used for inappropriate spending like properties and political donations. 

In his testimony, Wang revealed details about Alameda’s account with FTX. He said that Bankman-Fried posted on Twitter (now known as X) that Alameda's account was “just like everyone else’s.” 

However, Wang said that Bankman-Fried had asked him on the same day to rewrite FTX’s code so Alameda can have unlimited withdrawal capabilities. Wang said Alameda had a $65 billion line of credit with FTX and could run a negative balance, features that other users did not have. 

During cross-examination, Bankman-Fried’s lawyer, Christian Everdell, suggested that Alameda’s unique account features were because it was a “market-maker”. 

In connection with FTX’s collapse, Wang was charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud. He has pleaded guilty to these federal charges. 


Bankman-Fried tweeted that FTX was “fine” when he was aware that it was not.


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