Week three of the Sam Bankman-Fried trial saw the testimony of Can Sun, former general counsel at FTX, in support of the prosecution’s case against Bankman-Fried. Sun discussed the company’s terms of service, documented loans from Alameda to FTX executives, and the reasons for his resignation. Another key witness, Nishad Singh, a former FTX executive and head of engineering, testified that he, Bankman-Fried, and other executives spent $8 billion of customer funds on various expenses, including real estate, venture capital investments, campaign donations, and branding rights to a sports stadium.
Key Takeaway
The Sam Bankman-Fried trial continues with testimonies from FTX executives and experts. Meanwhile, the New York Attorney General sues three crypto firms for alleged fraud, Reddit discontinues its blockchain-based program, and the FTC files a lawsuit against bankrupt Voyager over false claims.
Earlier in the trial, Gary Wang, co-founder and CTO of FTX, and Caroline Ellison, CEO of Alameda, also pleaded guilty for crimes related to the collapse of FTX and Alameda. The potential prison sentences for the three individuals range from 50 to 110 years. Peter Easton, an accounting professor at the University of Notre Dame, also testified regarding potential fraud in the FTX collapse, revealing that user funds were indeed spent.
NY AG sues three crypto firms for alleged fraud
Meanwhile, the New York Attorney General has filed a lawsuit against Gemini, Genesis, and DCG, accusing them of defrauding crypto investors out of more than $1 billion. The lawsuit alleges that the defendants engaged in illegal activities, including deceptive practices, false advertising, and violation of investor protection laws.
Reddit discontinues blockchain-based program
Popular social news aggregation platform Reddit has announced the discontinuation of its blockchain-based Community Points program. Community Points were designed to provide users with crypto rewards for their contributions to the platform. However, Reddit cited various challenges and limitations of the blockchain technology as the reason behind the program’s termination.
FTC sues bankrupt Voyager over false claims
In another legal development, the Federal Trade Commission (FTC) has filed a lawsuit against Voyager, a bankrupt crypto company, and its CEO for making false claims about FDIC insurance. The FTC alleges that Voyager falsely advertised that its customers’ funds were insured by the Federal Deposit Insurance Corporation (FDIC), leading to misleading and deceptive practices.
