- Former FTX CTO exposed fraudulent insurance fund claims during SBF’s trial.
- It includes allegations of fabricated numbers and deception in FTX’s financial reporting.
- SBF was accused of encouraging customer withdrawals to mask financial turmoil.
On the fourth day of the trial involving FTX founder Sam Bankman-Fried (SBF), FTX’s former Chief Technology Officer, Gary Wang, delivered a bombshell testimony that sent shockwaves through the crypto world. Parts of Wang’s revelations centered around the alleged fraudulent nature of FTX’s published insurance fund balance.
Another crazy revelation from the SBF trial – The "FTX insurance fund" and generated by a random number generatorThe real definition of "Magic internet money" https://t.co/gm5SbWBcLq
— Coin Bureau (@coinbureau) October 7, 2023
Under intense questioning, Wang admitted that the published insurance fund number on FTX’s platform was inaccurate and completely fabricated. When asked about the size of the backstop fund listed in a tweet, Wang revealed that it was purportedly $5.5 million and $5 million FTT (the native asset of FTX). However, he unequivocally stated that this number was a sham.
Fu…
The post SBF Lieutenant Testifies on FTX Fabricated Insurance Fund Balance appeared first on Coin Edition.