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> The backing of that number was testified to, under oath, to Congress, which by itself is a felony. He did not testify that the number on the website was real
by shapefrog 3y ago
> The backing of that number was testified to, under oath, to Congress, which by itself is a felony.
He did not testify that the number on the website was real. He testified to the existence of the insurance fund and the single biggest daily drawdown from the fund.
"which by itself is a felony" - wouldnt you mention that as the prosecution??? Or are they aiming for a mistrial on the grounds of incompetence?
> Prosecutors haven’t mentioned it, but Sam Bankman-Fried would go on to testify under oath in front of the U.S. Congress in May 2022 that “the insurance fund has paid out a net total of $9.5 million” in the preceding three years, and that “the single biggest daily drawdown from the FTX.com insurance fund was $4.7 million.”
Actual testimony. https://www.congress.gov/event/117th-congress/house-event/114729/text https://www.congress.gov/event/117th-congress/house-event/11...
> Finally, prosecutors questioned Wang about the FTX “insurance fund”, which was ostensibly supposed to protect both FTX and its customers from trades that went badly even more quickly than the exchange’s risk engine could account for.
> One such example was in 2021, when a trader was able to exploit a bug in FTX’s margin system that allowed them to take out a massive position in the MobileCoin cryptocurrency. They were eventually liquidated, and FTX suffered a loss of “several hundred million dollars,” according to Wang.
The losses to the exchange from a failure of the code should be borne by the exchange not from any "insurance fund" whos purpose is the make good slippage losses for customers. There are grounds to ask why they passed the loss off to Alameda (in which case FTX co was defrauding Alemada co for an FTX mistake).
I see the narative that the prosecution is trying to push, but unless SBFs laywers are idiots they should be pointing out that they are trying to connect two distinctly different dots.