Inside the FTX Trial: Gary Wang Reveals the Dark Secrets of a Crypto Collapse

Wang Takes the Stand

On October 5, 2023, the courtroom was filled with tension as Gary Wang, the co-founder and former chief technology officer of the infamous FTX cryptocurrency exchange, testified against former CEO Sam Bankman-Fried (SBF). After a string of testimony from various former associates, including developer Adam Yedidia and Paradigm’s Matt Huang, Wang dropped bombshells that shook the already tumultuous trial.

The Admission of Guilt

Addressing the court, Wang didn’t shy away from owning up to the misdeeds he was a part of while at FTX. Tasked with the technical side of things, he acknowledged that he collaborated with a trio of high-profile peers: Caroline Ellison, the former Alameda Research CEO, and Nishad Singh, FTX’s engineering director, to perpetrate activities that would ultimately lead to the downfall of the exchange. “We allowed Alameda to withdraw unlimited funds,” he stated, effectively throwing back the curtain on the financial chaos behind the scenes.

It Was All Sam’s Call

When pressed on his role, Wang demurred, saying, “Sam handled speaking to the media, lobbying, talking with investors. I just coded.” His comments echoed a familiar sentiment in many corporate environments—when the heat is on, the coder often gets sidelined. Suddenly, the power dynamics in FTX’s operations were laid bare: the decisions that mattered were in the hands of a select few, leaving the tech team in the dust.

Trial Timeline and Implications

The proceedings marked day three of Bankman-Fried’s criminal trial in New York, which has gripped the public’s attention. Witnesses have been shedding light on the strong ties between FTX and Alameda prior to the calamity that led to the exchange’s bankruptcy. Notably, evidence suggests that SBF directed employees to misuse user funds to cover losses at Alameda—a maneuver that would haunt the crypto exchange and its stakeholders.

Future Testimonies and Potential Outcomes

As part of a guilty plea deal sealed in December 2022, Wang’s cooperation set a precedent for future testimonies. Both Ellison and Singh are anticipated to contribute their insights, amplifying Wang’s statements and painting a fuller picture of the chaos at FTX. The trial is expected to wrap up in November, with the specter of SBF’s misconduct hanging heavily over every session.

SBF’s Legal Troubles Continue

While accusations of witness intimidation loom large—prompting Judge Lewis Kaplan to revoke SBF’s bail back in August—there remains uncertainty about whether the former CEO will take the stand in his defense. In the U.S., one is not obliged to testify if it could incriminate them. Will SBF break his silence, or will he let the testimony of others dictate his fate?