Hi, everyone. Laura here. This is the Unchained Recap for day four, October 6th, of the criminal

trial of Sam Bingpin-Freed. Quick note before we start, the original version of yesterday's

recap had two errors, which we corrected later. And since some people may have listened

to the inaccurate version, I'll just state those corrections here. I initially said that

the Fiat ad account was money in a bank called North Dimension. It was, however, an account

debt silver gate bank controlled by Alameda Research, but under the name North Dimension.

A second at the time the bug was discovered, it's not that it said that Alameda owed $500

million to FTX customers, but that it said that it owed $500 million more than it actually

owed. Okay, now for the most recent update.

In continued testimony Friday, Gary Wong, the co-founder of both Alameda Research and

FTX, who faces a maximum sentence of 50 years in prison, described Alameda's special privileges

that were programmed into FTX's code as early as July 31st, 2019, a few months after the

exchange launched. Prosecutors presented evidence to the court, including previously deleted

messages, tweets, and GitHub code documents. Wong, who is cooperating with the government

in hopes to preserve, quote, ideally, no prison time, noted that these advantages were

not as close to the public, FTX customers, or investors. According to Wong, one privilege

included Alameda's ability to have a negative balance on its FTX account. This meant that

Alameda was able to transfer and withdraw more funds than it had, essentially, quote, borrowing

from the exchange. In July 2019, shortly after launch, Bankman

Fried allegedly asked Wong and the Shod Singh FTX's head of engineering to pay for various

FTX-related expenses from Alameda's accounts and other bookkeeping accounts on FTX. In

particular, the expenses were those related to FTT, the cryptocurrency created by FTX,

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