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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Quick takeaways
- Former FTX General Counsel expressed shock at the $7 billion deficit in customer funds and revealed that Sam Bankman-Fried asked for legal justifications.
- Former FTX General Counsel confirmed suspicions of misappropriated FTX customer deposits after a meeting where it was confirmed that FTX lacked sufficient funds to cover withdrawals.
Deep dives
Former FTX General Counsel testifies that Bankman-Fried asked for a legal justification for the $7 billion deficit
The former General Counsel of failed crypto exchange FTX, CANS Sun, testified at the trial of Sam Bankman-Fried that Bankman-Fried had asked for a legal justification for FTX's $7 billion deficit to cover customer withdrawals before the firm's collapse. Sun stated that it was his understanding during his time at FTX that customer assets were safeguarded and not misused. He testified that the revelation of the missing funds shocked him and prompted him to ask about the calculations behind the deficit, receiving vague or no responses.
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