SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
Unchained
Laura Shin
4.6 • 1.3K Ratings
🗓️ 6 October 2023
⏱️ 6 minutes
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| 0:00.0 | Hi everyone, Laura here with your unchained recap of day three of the criminal trial for |
| 0:08.8 | Sam Pinkman Freed. |
| 0:10.9 | Three people testified during the Sam Pinkman Freed trial Thursday with one declaring |
| 0:15.1 | that FTX, quote, defrauded all of its customers and another stating that he had committed financial |
| 0:20.6 | crimes. |
| 0:21.9 | Former FTX software developer Adam Yidditya, paradigm co-founder Matt Huang and FTX co-founder |
| 0:27.8 | Gary Wang took the witness stand answering questions about their interactions with |
| 0:31.7 | Pinkman Freed and his business dealings. |
| 0:34.5 | Yidditya, who finished his two day testimony on Thursday, shared with the court why he |
| 0:38.9 | resigned from FTX. |
| 0:40.8 | In December 2021, Yidditya became aware of a bug in FTX's code base that overstated how |
| 0:46.6 | much money Alameda Research owed FTX. |
| 0:50.5 | When FTX customers deposited Fiat money, namely the US dollar, into the exchange, sometimes |
| 0:57.0 | they would route it to an account at Silvergate Bank, controlled by Alameda Research, but under |
| 1:02.2 | the name North Dimension. |
| 1:05.0 | This was tracked internally in the FTX database with an account called Fiatatftx.com. |
| 1:12.1 | At the time the bug was discovered, FTX's internal system had mistakenly indicated that Alameda |
| 1:18.2 | Research owed $500 million more than it actually owed to FTX customers. |
| 1:24.0 | By the time it was fixed in June 2022, it revealed that Alameda owed $8 billion to FTX customers, |
| 1:31.7 | a large and concerning number to Yidditya. |
| 1:34.7 | At this point, Yidditya had a conversation with Pinkman Freed in the paddle tennis courts |
| 1:38.6 | at Albany, the luxury community where they lived in the Bahamas. |
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