The FTX co-founder and Alameda CEO didn’t hold back at SBF’s trial (Chain Reaction)

Equity

TechCrunch

Entrepreneurship, Business News, News, Business, Technology

4.2 • 372 Ratings

🗓️ 14 October 2023

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week, we have a bonus mini episode where Jacquelyn talks with TechCrunch+ editor-in-chief Alex Wilhelm to dive back into the Sam Bankman-Fried trial and what has transpired in its second week. Major witnesses who were involved in the downfall of FTX and its sister company Alameda testified like Gary Wang, CTO and cofounder of FTX, and Caroline Ellison, CEO of Alameda. The two of them plead guilty to a number of charges and could face maximum sentences of 50 to 110 years, respectively. It’s also worth noting Wang and Ellison testified as part of a cooperation agreement for pleading guilty. Jacquelyn and Alex talk about key points from the trial, anecdotes that you can’t read on a transcript and what she anticipates from both the prosecutors and defense going forward. Want more? Here’s the latest on the SBF trial: Former Alameda CEO Caroline Ellison explains how FTX hid losses, sandbagged lenders Alameda Research allegedly paid Chinese officials around $150M to regain $1B worth of exchange accounts Alameda Research’s ex-CEO Caroline Ellison testifies, claims SBF directed her to commit crimes Alameda had a $65B line of credit and ‘unlimited withdrawals’ As SBF’s trial heads into its second week, here’s what we know so far Chain Reaction comes out every Thursday at 12:00 p.m. ET, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action. Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey everyone, it's Jacquelinek.
0:03.0	Welcome to Chain Reaction, a show that unpacks and dives deep into the latest trends, drama, and news
0:08.5	with some of the biggest names in crypto, breaking things down block by block for the crypto curious.
0:13.4	Today we're doing a mini episode to dive back into the Sam Bankman
0:21.2	free trial and what has transpired in week two.
0:24.9	There were major witnesses who spoke that were involved in the downfall of FTX and its
0:28.9	sister company Alameda, like Gary Wong, CTO and co-. and co-founder of FTX and Caroline Ellison, the CEO of
0:35.5	Alameda. The two of them pled guilty to multiple counts, four for Gary, seven for
0:40.3	Caroline, and could face maximum sentences up to 50 or 110 years
0:44.8	respectively. It's also worth noting that they testified as a part of their
0:48.9	cooperation agreement for pleading guilty. Anyways Alex how are you? I'm really good and I've had the
0:55.5	pleasure of being one of your editors on all your coverage of this trial and so I get to
1:00.0	say fun things like I'm caught up on Caroline but I'm not caught up on
1:03.2	Gary but it sounds like the the litany of witnesses has continued all week.
1:07.6	Yeah so most of this week was Caroline she spoke all day on Wednesday, all day on Thursday.
1:14.3	Gary was all day on Tuesday, so I guess, I don't know, they're sharing.
1:18.3	And at the end of Thursday, we had one former Alameda employee who was a software engineer and then we also had a brief
1:27.0	intro from Zach Prince who is the founder of Block Vye who was all tangled up in the collapse of F-DX because there was some money moving around between both companies?
1:35.2	Yes, so Block VI was a crypto lender that lended to FTX, but it also ended up declaring bankruptcy as a result of the whole situation with
1:44.6	FTX so we'll hear more about that on Friday. Oh man going back through our
1:49.6	coverage of this era of the crypto market. I had almost forgotten how many companies hit the skids in and around the same time that
1:58.0	FTX fell apart. It was a shocking amount of domino collateral damage.
	...

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