Sam Bankman-Fried lied to FTX lawyers about using customer funds
The post Sam Bankman-Fried lied to FTX lawyers about using customer funds appeared on BitcoinEthereumNews.com. At a glance FTX’s former general counsel Can Sun testified to his own ongoing deception by Sam Bankman-Fried in 2021 and 2022. Bankman-Fried’s repeated explanations for the missing funds may have originated in “theoretical justifications” offered by the lawyer. Prosecutors also highlighted FTX terms of service clauses that clearly prohibited FTX use of customer funds. Can Sun, former FTX general counsel, testified on Thursday that Sam Bankman-Fried repeatedly misled him about the nature of financial flows in the FTX empire. Sun, a Yale Law graduate, joined FTX in August of 2021 and was given the task of revamping the exchange’s terms of service. He walked prosecutors through sections of those terms that clearly indicated that FTX would not move or borrow their funds without consent. Sun also recounted multiple instances, including in something called FTX’s ‘Key Principles,’ when Bankman-Fried assured him customer funds were sacrosanct. Sun said he frequently told investors and others that Alameda Research and the FTX exchange were separate entities, “based on representations made to me by Sam [Bankman-Fried].” But in mid-2022, Sun testified, he began to discover a variety of inconsistencies, which prosecutors walked him through. They included the undocumented transfer of millions of dollars to Bankman-Fried and former FTX executive Ryan Salame. Sun also described discovering, in August or September of 2022, that Alameda had special privileges on FTX. “I was shocked. It went against everything we had told regulators,” Sun testified. “I asked for it to be removed.” Sun stayed with FTX after his discovery because he thought Alameda’s margin exception was being changed — and because “I was told the … [Alameda] carveout had never been triggered.” Read more: Could Sam Bankman-Fried’s Adderall dose be grounds for mistrial? However, on November 7, 2022, Sun finally made a discovery he couldn’t ignore. FTX was…
The post Sam Bankman-Fried lied to FTX lawyers about using customer funds appeared on BitcoinEthereumNews.com.
At a glance FTX’s former general counsel Can Sun testified to his own ongoing deception by Sam Bankman-Fried in 2021 and 2022. Bankman-Fried’s repeated explanations for the missing funds may have originated in “theoretical justifications” offered by the lawyer. Prosecutors also highlighted FTX terms of service clauses that clearly prohibited FTX use of customer funds. Can Sun, former FTX general counsel, testified on Thursday that Sam Bankman-Fried repeatedly misled him about the nature of financial flows in the FTX empire. Sun, a Yale Law graduate, joined FTX in August of 2021 and was given the task of revamping the exchange’s terms of service. He walked prosecutors through sections of those terms that clearly indicated that FTX would not move or borrow their funds without consent. Sun also recounted multiple instances, including in something called FTX’s ‘Key Principles,’ when Bankman-Fried assured him customer funds were sacrosanct. Sun said he frequently told investors and others that Alameda Research and the FTX exchange were separate entities, “based on representations made to me by Sam [Bankman-Fried].” But in mid-2022, Sun testified, he began to discover a variety of inconsistencies, which prosecutors walked him through. They included the undocumented transfer of millions of dollars to Bankman-Fried and former FTX executive Ryan Salame. Sun also described discovering, in August or September of 2022, that Alameda had special privileges on FTX. “I was shocked. It went against everything we had told regulators,” Sun testified. “I asked for it to be removed.” Sun stayed with FTX after his discovery because he thought Alameda’s margin exception was being changed — and because “I was told the … [Alameda] carveout had never been triggered.” Read more: Could Sam Bankman-Fried’s Adderall dose be grounds for mistrial? However, on November 7, 2022, Sun finally made a discovery he couldn’t ignore. FTX was…
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