The Breakdown
BlockFi CEO and Former Colleague Continue the Crush of SBF's Defense
Oct 19, 2023
Nishad Singh and Zach Prince testify in the SBF trial, discussing topics such as the solvency of Alameda Research, BlockFi's losses, FTX's spending and investments, manipulated balance sheets, and the defense's struggles.
18:18
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Quick takeaways
- Alameda Research's privileged relationship with FTX was built into the codebase, leading to fraudulent activities and BlockFi's bankruptcy.
- Sam Bankman-Fried's extravagant approach to decision-making and manipulation of revenue data caused discomfort and betrayal among colleagues.
Deep dives
Key Testimonies Damning to Sam's Case
The first witness, Gary Wong, co-founder and CTO of XFTX, provided damning testimony that exposed the mechanics of implementing fraud within FTX. He revealed that Alameda's privileged relationship with FTX was built into the codebase as early as 2019. Caroline Ellison, CEO of Alameda Research at the time of its failure, testified about Sam's continued control over Alameda, even after stepping down as CEO. Her testimony also highlighted Sam's questionable behavior. Another significant witness, Zach Prince of BlockFi, testified that they believed Alameda Research was solvent based on the balance sheets they saw. BlockFi had loaned over a billion dollars to Alameda, which ultimately led to BlockFi's bankruptcy after the collapse of FTX.
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