Adam Yedidia discloses crucial information regarding FTX’s $8 billion deficit and alleged fraud, highlighting ties to Alameda Research.
On October 5, before the United States District Court for the Southern District of New York, Adam Yedidia, a former MIT roommate and FTX developer for Sam Bankman-Fried, provided a compelling deposition.
Yedidia detailed the purported $8-billion deficit reported by the crypto exchange FTX before its bankruptcy, shedding light on the intricate connections between the exchange and Alameda Research. In addition, he identified a critical flaw in the FTX code that, according to his account, prevented Alameda’s liabilities from decreasing, resulting in a staggering financial error.
Yedidia Reveals the Alleged Financial Misdeeds of FTX
The revelations of Yedidia, particularly concerning the crypto exchange’s interactions with Alameda Research, have become central to the allegations of fraud against SBF. Under the precise interrogation of Assistant U.S. Attorney Danielle Sassoon, his testimony revealed that he resigned from FTX after learning that “Alameda had used customer deposits to pay its loans.”
Yedidia stated that Bankman-Fried preferred to discuss FTX code using Signal. He emphasized their extensive use of the app’s auto-delete function.
SBF emphasized the risks associated with storing messages; he believed stored messages posed risks, particularly if regulators discovered negative content. The objective of this strategy was to shield the company from regulatory censure.
During a notable incident, Yedidia confronted SBF about the $8 billion financial discrepancy near a paddle tennis court in The Bahamas. Despite the tension, the former CEO provided assurances regarding the situation.
Additionally, Sassoon’s inquiries brought to light Yedidia’s awareness of Bankman-Fried’s interactions with former Alameda Research CEO Caroline Ellison.
Yedidia disclosed a forthright conversation in which SBF revealed a personal encounter with Ellison and inquired about the possibility of dating her. Yedidia advised against dating Ellison.
Ellison to Testify Against SBF Soon
Following her plea agreement with prosecutors, Ellison intends to testify against Bankman-Fried. In August, the overseeing judge, Lewis Kaplan, revoked SBF’s parole following prosecution arguments that he had intimidated Ellison and others as witnesses by exposing some of her journals to New York Times reporters.
The jury selection phase of the trial began on October 3 and is anticipated to last until November. Following Yedidia, additional witnesses, including Gary Wang, one of the co-founders of FTX, are anticipated to testify.
Prosecutors have also indicated that former FTX engineering director Nishad Singh and former FTX chief operating officer Constance Wang may be called as witnesses.
