Ex-FTX CTO Reveals False Insurance Fund Claims During SBF’s Trial. Allegations include fake numbers and misleading financial reports, with claims that SBF encouraged customer withdrawals to hide financial troubles.
FTX Trial Shocker: Ex-CTO Accuses FTX of Faking Insurance Fund Balance. During the trial, Gary Wang, FTX’s former Chief Technology Officer, revealed alleged fraud related to FTX’s insurance fund balance.
Another crazy revelation from the SBF trial – The "FTX insurance fund" and generated by a random number generator 🤯
The real definition of "Magic internet money" https://t.co/gm5SbWBcLq
— Coin Bureau (@coinbureau) October 7, 2023
Former FTX CTO, Gary Wang, revealed during questioning that FTX had provided inaccurate and fabricated numbers for its insurance fund balance. He stated that the published figure didn’t match the actual holdings and that there was no FTT (FTX’s native asset) in the insurance fund, contrary to what was presented. Wang alleged that FTX independently generated these misleading figures and didn’t reflect the true state of the fund.
Additionally, Wang claimed that FTX’s founder, Sam Bankman-Fried, was aware of the dire financial situation at FTX, including a significant fund shortage. In response, Bankman-Fried allegedly encouraged customer withdrawals to give the impression of financial stability, even making public statements to reassure customers. This testimony raised questions about the transparency and honesty of FTX’s financial reporting.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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