Unchained SBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBF
Oct 20, 2023
On Day 12 of the trial, the former general counsel of FTX disclosed a staggering $7 billion deficit in customer funds. He recounted pressure from Sam Bankman-Fried for legal justifications during the company's collapse. Emotions ran high as he revealed a meeting determining that FTX couldn't cover customer withdrawals, fueling suspicions of misappropriated deposits. Additionally, a Third Point executive highlighted important omissions by Bankman-Fried that could have prevented a disastrous $60 million investment, leaving listeners eager for the next chapter.
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SBF Seeks Justification for Missing Funds
- Former FTX General Counsel Can Sun testified about a $7 billion deficit in customer funds.
- Sam Bankman-Fried (SBF) asked Sun for legal justifications, highlighting SBF's awareness of the issue.
Singh's Distress Before FTX Collapse
- The night before FTX's insolvency, Nishad Singh, former head of engineering, appeared emotionally distressed.
- Sun described Singh as looking like his "soul had been plucked away from him."
Discrepancy Between FTX's Promises and Reality
- Can Sun emphasized FTX's public and private assurances about safeguarding customer assets.
- He expressed shock at the $7 billion deficit, contradicting these assurances.