Unchained
SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
Oct 6, 2023
During the trial, testimonies revealed shocking insights into FTX's operations and fraud. One witness boldly claimed that FTX defrauded its customers, while another admitted to committing financial crimes under Sam Bankman-Fried's direction. Former software developer Adam Yedidia shared an emotional turnaround, expressing love for the company until he discovered the truth of the deceit. Additionally, concerns about FTX's corporate controls were raised, emphasizing that the company was closely managed by Bankman-Fried. This episode dives deep into the unraveling of a crypto giant.
06:34
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Quick takeaways
- Former FTX software developer Adam Yudidia testified about a bug in FTX's code base that caused an exaggerated debt of $8 billion from Alameda research to FTX customers, leading him to conclude that FTX had defrauded its customers.
- Matt Huang, co-founder of Paradigm, testified about their concern over FTX's lack of corporate controls and how customer deposits are considered sacred, as Paradigm's investment of $278 million in FTX ended up being marked to zero.
Deep dives
Testimony of Adam Yudidia
During the trial, former FTX software developer Adam Yudidia testified about a bug in FTX's code base that caused an exaggerated debt of $8 billion from Alameda research to FTX customers. Yudidia had a conversation with Sam Bingman Freed, the former FTX CEO, who admitted that the company was no longer 'bulletproof.' Yudidia later discovered that Alameda had used FTX customer deposits to pay off its loans, leading him to conclude that FTX had defrauded its customers.
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