On Thursday, Sam Bankman Fried’s criminal case entered its third day. Prosecutors continued to question Adam Yedidia – Bankman Fried’s former college friend, as well as a former employee at both Alameda Research, and FTX.
Yedidia reported that Danielle Sassoon, the prosecutor, was laser focused on money Alameda owed FTX. This amount amounted $8 billion by June 2022.
FTX depositors used to send their money through Silvergate Bank, an Alameda controlled bank, into a Silvergate Bank-controlled account called “North Dimension.” The account’s name — but not its controller — was published on FTX’s website for customers to see when looking up how to make deposits, Sassoon confirmed.
Yedidia reported that FTX used an internal account to calculate the amount of money Alameda owed its customers. The account subtracted all deposits from withdrawals.
Yedidia explained that in late 2021 the team discovered an error in the code which incorrectly raised the value of the liability by $8 billion. Before the bug was corrected, the total apparent liability of Alameda for FTX users read $16 Billion, he stated.
Yedidia was asked by Bankman-Fried to fix the problem. In June 2022, after the liability was corrected to show the accurate amount – $8 billion — Yedidia went to Bankman-Fried concerned about this high number.
Bankman Fried and Yedidia faced off on the paddle tennis court of the Albany in late June or early July in 2022. Yedidia was living in the penthouse at this luxury apartment building in The Bahamas, where she shared a penthouse unit with Bankman Fried.
“I wanted to be certain that Alameda could repay that debt,” Yedidia said to the court.
Yedidia was told by Banker-Fried that he should tell him. “we were bulletproof last year” But not this year. Bankman Fried added that bulletproofing could take between 6 months and 3 years.
Bankman-Fried, according to Yedidia appeared “worried or nervous” Based on the facial expressions he noticed during this conversation. This was not typical of the former FTX chief.
Keep up with highlights. Highlights are updated regularly.Sam Bankman Fried trial transcript.
FTX was not even six months old when it began. “bulletproof” again. Four months later, a bank run at the exchange led to the bankruptcy of the company.
Everdell – the attorney for the defence – tried to bring out Bankman Fried’s good character. The defense tried to dispel a popular myth about Bankman-Fried by claiming that he had never owned a sports car, yacht or fancy watch.
Everdell also added that Bankman-Fried kept in regular contact with officials. It was an effort to refute Yedidia’s initial statement, which claimed that the FTX Founder used Signal (an encrypted messaging system Bankman-Fried ordered the company use) to cover up messages the regulators didn’t want to see.
Everdell ran into a brick wall when he tried to get Yedidia’s view on FTX’s strategy to confer with regulators — the prosecution objected at least five times to his verbiage, each of which Judge Lewis Kaplan upheld.
Everdell switched topics several times, a move he had to make because the state objected repeatedly to his repeated repetition of information heard by the jury.
Everdell’s method of interacting with the jury grew increasingly unsatisfactory to the judge after lunch.
“You’re wearing out your welcome on repetition,” Kaplan explained to the attorney.
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