Accéder au contenu principal

Gary Wang Testifies FTX Faked Insurance Fund Data

Gary Wang, the enigmatic co-founder and chief technology officer of the defunct cryptocurrency exchange FTX, provided an incriminating testimony during the ongoing criminal trial of Sam Bankman-Fried, marking the trial’s third day.

Wang revealed in a shocking new statement that FTX’s purported $100 million insurance fund for 2021 was a fabrication and never held any of the exchanges’ FTX tokens (FTT) as stated.

Wang’s testimony is consistent with the views held by the cryptocurrency community, which has discovered proof of software code allegedly used by FTX to manipulate its insurance fund and deceive the public about its true values.

Gary Wang: The Damning Testimony

BitMex Research recently tweeted a screenshot purporting to show the FTX database code in dispute. According to BitMex Research, FTX used a random number function to generate the insurance fund it published to the public.

FTX’s insurance fund, intended to safeguard users against substantial market losses, was frequently promoted on its platforms. Yet, Gary Wang’s testimony reveals that FTX employed concealed Python code to misrepresent the value of its insurance fund.

He added that the fund often fell short of covering such losses. In a notable instance in 2021, a trader managed to exploit a margin system bug on FTX, leading to a massive loss of hundreds of millions of dollars for the exchange.

Under intense questioning, Wang admitted that the insurance fund figure presented on FTX’s platform was not only inaccurate but completely fabricated. Notably, he revealed that there was no FTT token in the insurance fund; instead, it was represented solely by a USD figure, which did not align with the actual data stored in the database.

BTCUSD trading at $27,793 today. Chart: TradingView.com

Upon Bankman-Fried’s realization that the insurance fund had nearly depleted, Wang disclosed being instructed to assign the loss to Alameda. The alleged intention behind this action was to conceal the loss, as Alameda’s financial statements were comparatively more confidential than those of FTX.

Gary Wang And SBF: Friends To Enemies

Gary Wang worked behind the scenes at the exchange until it collapsed, while Bankman-Fried kept a prominent public persona for it. While Bankman-Fried dealt with the media, campaigned, and met with investors, Wang stated that his work was mainly focused on coding.

Wang and Bankman-Fried were both involved in the formation of the cryptocurrency hedge fund Alameda Research and attended the Massachusetts Institute of Technology. According to Inner City Press, Wang revealed in his court testimony that he owned 10% of Alameda Research and that Bankman-Fried owned the remaining 90% of the company.

Not only did Gary Wang disclose the purportedly fraudulent nature of FTX’s insurance fund, but he also stated that Bankman-Fried encouraged him and Nishad Singh – FTX’s director of engineering who had a 7.8% stake in the company – to add an “allow_negative” balance feature to the FTX code. This feature allowed Alameda Research to trade on the cryptocurrency exchange with almost infinite liquidity.

Wang entered a guilty plea to wire fraud and other criminal offenses alongside Singh and Caroline Ellison, the former co-CEO of Alameda Research. Seven counts against Bankman-Fried include conspiracy to commit money laundering and wire fraud pertaining to the FTX operation.

Featured image from Tapchibitcoin




Source link

The post Gary Wang Testifies FTX Faked Insurance Fund Data appeared first on Job From Home Blog.

Libellés :

Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

Hong Kong SFC Raises Alert Over MEXC Imposter

The Hong Kong Securities and Futures Commission (SFC) has issued an alert on a suspected fraudulent platform impersonating the presence and operations of a popular cryptocurrency exchange MEXC. This development comes from a joint operation between the Hong Kong regulator and the local police force aimed at uncovering illicit activities of virtual asset trading platforms (VATPs). SFC Warns Hong Kong Citizens Of Fraudulent Trading Platform According to an announcement on February 9, the SFC is warning crypto enthusiasts and investors of an ambiguous trading platform that operates under the name “MEXC.” In a joint investigation with the Hong Kong police, the securities market regulator discovered that “MEXC” has lured several investors into becoming members of group chats in which it claimed to offer “free investment advice.” Through this medium, “MEXC” was able to direct unsuspecting investors into depositing funds through fraudulent websites in order to purchase cryptocurrencies. Th...
Enregistrer un commentaire
Lire la suite

What’s In Store For Bitcoin With 85% Of Holders In Profit

Amidst a renewed wave of optimism sweeping through the broader cryptocurrency landscape, the resurgence of Bitcoin (BTC) to the pivotal $37,500 price threshold has become a catalyst for positive shifts. At present, a staggering 85% of Bitcoin holders find themselves in a profitable position, a testament to the resilience and potential of the leading cryptocurrency. Encouragingly, key indicators hint at the likelihood of this percentage expanding in tandem with Bitcoin’s upward trajectory. Making Money With Bitcoin As the market plummeted from its all-time high in November 2021, the amount of Bitcoin supply in profit has reportedly hit levels last observed two years ago, according to Glassnode. The analytics service also stated that the amount of unrealized profit contained in these currencies is still very small. Based on the latest figures from blockchain analytics website IntoTheBlock, some 85% of Bitcoin holders are profitable at the current price of the first cryptocurrency,...
Enregistrer un commentaire
Lire la suite

Instagram Is Experimenting With an Option To Add Files to DMs

What if you could send files in your IG DMs? That may soon be an option, with app researcher Alessandro Paluzzi uncovering this process in the back-end data of the app. As you can see in this example, Instagram’s experimenting with a new option that would let you add files to your messages as attachments. Which is not overly surprising. You can already send documents within WhatsApp , and on Messenger (in limited capacity), and with Meta still working to integrate all of its messaging platforms into a single system , it makes sense that it would also need to replicate the functionality of each, to ensure full parity. So, basically, every function within Messenger, IG Direct and/or WhatsApp will eventually be available in each other app, as that will then enable Meta to link them all together into a singular messaging system. As such, I do think this is coming, and is more than just an experiment, which will provide expanded functionality within your IG DMs, and could be handy...
Enregistrer un commentaire
Lire la suite