Gary Wang, the co-founder and former Chief Technology Officer (CTO) of the cryptocurrency exchange FTX, has provided testimony as a key witness in the ongoing criminal trial of former FTX CEO Sam "SBF" Bankman-Fried. Wang's testimony took place on October 5, following earlier testimonies from former FTX developer Adam Yedidia and Matt Huang, co-founder of Paradigm.
In his court appearance, Wang reportedly admitted to participating in illicit activities during his tenure at FTX, in collaboration with Bankman-Fried, former Alameda Research CEO Caroline Ellison, and former FTX Director of Engineering Nishad Singh. He disclosed that FTX permitted Alameda to withdraw funds without restrictions.
Wang also clarified the division of responsibilities between himself and Bankman-Fried during their time at FTX. He explained that while Bankman-Fried handled tasks such as media interactions, lobbying, and investor communications, his primary role revolved around coding. In cases of disagreement, the ultimate decision rested with Bankman-Fried.
The October 5 proceedings marked the third day of Bankman-Fried's criminal trial in New York. Testimonies from witnesses primarily focused on the connections between Alameda and FTX before the exchange declared bankruptcy. These testimonies included allegations that Bankman-Fried instructed employees to utilize FTX user funds to cover Alameda's losses.
Wang's appearance as a witness resulted from an agreement with prosecutors as part of a plea deal reached in December 2022. Caroline Ellison and Nishad Singh are also expected to testify against Bankman-Fried before the trial concludes, likely in November.
Notably, Bankman-Fried's bail was revoked by Judge Lewis Kaplan in August, which means he will likely remain in jail throughout the trial. Prosecutors have accused Bankman-Fried of engaging in witness intimidation against Ellison and others.
The uncertainty remains whether Bankman-Fried intends to present a defense during the trial, as the U.S. Constitution safeguards individuals from being compelled to provide self-incriminating testimony.
