During his testimony on the third day of SBF's fraud trial, Paradigm co-founder Matthew Huang revealed Bankman-Fried resisted investor board seats at FTX.
Paradigm’s Matt Huang: SBF Made Him Believe That Alameda Did Not Have Privileged Treatment
During his testimony on the third day of SBF's fraud trial, Paradigm co-founder Matthew Huang revealed Bankman-Fried resisted investor board seats at FTX. Huang engaged with SBF before Paradigm's $125 million stake in FTX's $900 million funding round, and claimed that SBF believed that having investors on FTX’s board of directors would not bring much benefits.
While concerned over lack of structure and FTX's relationship with Alameda, Huang said the rapid growth of the crypto exchange misled investors, including venture capital firms like Paradigm, Temasek, Sequoia and BlackRock.
Huang claimed SBF assured him that Alameda received no preferential treatment from FTX, contradicting earlier testimony that Alameda had unlimited access to customer funds. If he was told deposits backed Alameda bets, Huang said his investment decision would have changed as customer money is "sacred."
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