Alameda Research used customer funds as early as 2019, Gary Wang testifies
At a glance Gary Wang described Alameda Research using the in-house FTT token as collateral for loans of FTX customer funds since nearly the beginning of FTX’s operations in 2019. Gary Wang descibed FTX granting Alameda Research its special privileges within months of the founding of FTX. Alameda’s accounts were running a negative balance as early as late 2019. Eventually, Alameda’s line of credit at FTX was set at $65 billion dollars, effectively giving them free access to all customer funds on the exchange. Caroline Ellison is expected to testify next Tuesday when the trial resumes. The first week of Sam Bankman-Fried’s trial concluded with bombshell testimony from FTX co-founder and CTO Gary Wang, who said that the crypto exchange gave Alameda Research special access to borrow customer funds as early as late 2019 — just months after the founding of the exchange. Department of Justice prosecutors highlighted the special privileges that Alameda Research had on FTX, which...