{"id":170774,"date":"2023-10-09T13:39:28","date_gmt":"2023-10-09T08:09:28","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=170774"},"modified":"2023-10-09T13:39:28","modified_gmt":"2023-10-09T08:09:28","slug":"alameda-had-a-us65-bln-line-of-credit-says-ftx-co-founder-gary-wang-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/alameda-had-a-us65-bln-line-of-credit-says-ftx-co-founder-gary-wang-crypto-news\/","title":{"rendered":"Alameda had a US$65 bln line of credit, says FTX co-founder Gary Wang &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Gary Wang, co-founder and former chief technology officer of cryptocurrency exchange FTX, testified on Friday that Alameda Research, the sister trading firm of the exchange, had a special line of credit of up to US$65 billion from FTX, that allowed the firm to spend US$8 billion of customer funds.<\/p>\n<p><strong><em>See related article: <\/em><\/strong><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forkast.news\/ftx-co-founder-gary-wang-testifies-bankmanfried-trial\/\">Little-known FTX co-founder Gary Wang testifies in Sam Bankman-Fried trial<\/a><\/p>\n<h3 class=\"wp-block-heading\">Fast Facts<\/h3>\n<ul>\n<li>Initially, the line of credit limit was US$1 billion\u2026 We picked a number so high it would never be hit,\u201d testified Wang, on Friday.<\/li>\n<\/ul>\n<ul>\n<li>Wang said that shortly after co-founding the FTX and Alameda Research, Sam Bankman-Fried instructed him to write code enabling Alameda\u2019s FTX account balance to fall below zero, as a hidden feature that would allow virtually unlimited funds for the hedge fund.<\/li>\n<\/ul>\n<ul>\n<li>Wang also revealed that an account tied to the user ID \u201cseyouncharles,\u201d to which Bankman-Fried previously <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/news\/currencies\/alameda-billion-in-liabilities-in-korean-friends-account-2022-12\">referred<\/a> to as a \u201cKorean friend,\u201d was in fact an Alameda sub-account with a negative US$8 billion in balance, which was excluded from the main Alameda accounts and interest payment calculations.\u00a0<\/li>\n<\/ul>\n<ul>\n<li>At the end of Friday\u2019s hearing, the Department of Justice said Wang\u2019s testimony will conclude on Tuesday and that prosecutors expect to call in Caroline Ellison next, the former chief executive officer of Alameda Research.\u00a0<\/li>\n<\/ul>\n<ul>\n<li>Wang is among three former FTX executives who pled guilty to financial misconduct and testified against Bankman-Fried.<\/li>\n<\/ul>\n<ul>\n<li>FTX filed for bankruptcy in the U.S. on Nov. 11, 2022, along with over 100 of its affiliates. Bankman-Fried has been charged with seven counts of wire fraud and money laundering and faces up to 115 years in prison.\u00a0\u00a0<\/li>\n<\/ul>\n<p><strong><em>See related article: <\/em><\/strong><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forkast.news\/crypto-trust-trial-bankman-fried-faces-judgment\/\">Crypto trust on trial: Bankman-Fried faces judgment<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gary Wang, co-founder and former chief technology officer of cryptocurrency exchange FTX, testified on Friday that Alameda Research, the sister trading firm of the exchange, had a special line of credit of up to US$65 billion from FTX, that allowed the firm to spend US$8 billion of customer funds. See related article: Little-known FTX co-founder [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":68859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-170774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=170774"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170774\/revisions"}],"predecessor-version":[{"id":170775,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/170774\/revisions\/170775"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/68859"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=170774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=170774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=170774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}