FTX Co-Founder's Testimony Exposes Alleged Customer Fund Theft by Sam Bankman-Fried

FTX co-founder Gary Wang testified in a New York trial that Sam Bankman-Fried, the co-founder of FTX, authorized the illegal use of customer funds to cover losses at affiliated hedge fund Alameda Research. Prosecutors allege that Bankman-Fried stole billions of dollars to fund a lavish lifestyle and buy influence. Wang, who pleaded guilty to fraud charges, testified that Bankman-Fried ordered him to insert code into FTX's operations, allowing Alameda Research to make unlimited withdrawals and have a line of credit up to $65 billion. The losses at Alameda reached $14 billion, leading to FTX's bankruptcy filing. Wang also claimed that Bankman-Fried ordered the transfer of FTX's remaining assets to Bahamian regulators instead of U.S. authorities.