Last updated on November 2, 2023
Can Sun, the former general counsel of FTX, testified in court that he was shocked to discover that the founder of FTX, Sam Bankman-Fried (SBF), had secretly transferred billions of dollars in customer funds to his hedge fund, Alameda Research. Sun stated that he resigned the day after realizing that $7 billion was missing based on spreadsheets that indicated the scope of the fraudulent transfers. Sun’s testimony was published by Matthew Russell Lee from the Inner City Press. He also mentioned that he approached SBF about his concerns, but SBF’s response was relatively muted, showing no surprise.
During cross-examination, Mark Cohen, SBF’s attorney, discussed Sun’s employment contract with FTX, which revealed $3.5 million in loans and bonuses from Alameda Research. Sun admitted that both the transfers and the employment-related payments were connected. Sun also confirmed that he had signed a non-prosecution agreement with prosecutors, which required him to provide truthful testimony. If convicted of fraud and conspiracy charges, SBF could face over 100 years in prison.
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