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 <p class="is-style-lead">Disgraced FTX <a rel="noopener noreferrer nofollow" title="founder" href="https://thebittimes.com/tag/founder.html">founder</a> Sam Bankman-Fried’s <a rel="noopener noreferrer nofollow" title="trial" href="https://thebittimes.com/tag/trial.html">trial</a> will <a rel="noopener noreferrer nofollow" title="resume" href="https://thebittimes.com/tag/resume.html">resume</a> for its fifth day on Oct. 10, with prosecutors <a rel="noopener noreferrer nofollow" title="expect" href="https://thebittimes.com/tag/expect.html">expect</a>ed to question his ex and former colleague, Caroline Ellison.</p>
 <p class="is-style-default">The <a rel="noopener noreferrer nofollow" title="trial" href="https://thebittimes.com/tag/trial.html">trial</a>, which is set to last six weeks, will continue on Tuesday with key testimony <a rel="noopener noreferrer nofollow" title="expect" href="https://thebittimes.com/tag/expect.html">expect</a>ed from Ellison, who is regarded as a star witness to the goings-on at Alameda Research, where she held the title of CEO.</p>
 <p class="is-style-default">Alameda, a sister firm to FTX, allegedly siphoned off $8 billion in customer money from FTX and used that cash for personal means.</p>
 <p class="is-style-default">Ellison, along with former FTX CTO Gary Wang, pleaded guilty in December. Since then, they have been working with the U.S. attorney’s office in Manhattan.</p>
 <div class="cn-block-related-link">
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Caroline Ellison admits to stealing billions of dollars from FTX customers
 </div>
 <p>Observers of the <a rel="noopener noreferrer nofollow" title="trial" href="https://thebittimes.com/tag/trial.html">trial</a> should <a rel="noopener noreferrer nofollow" title="expect" href="https://thebittimes.com/tag/expect.html">expect</a> Ellison to discuss the sequence of events from 2019 to 2022, where FTX allegedly allowed Alameda to receive billion-dollar loans without posting collateral.</p>
 <p>The agreement permitted Alameda to borrow unlimited amounts and be free of negative balances and margin calls on FTX’s liquidation protocols.</p>
 <p>Ellison has previously confessed that she and Bankman-Fried altered financial statements to hide borrowing activity between Alameda and FTX executives.</p>
 <p>Bankman-Fried, 31, faces seven federal charges, including fraud and money laundering. He pleaded not guilty in January.</p>
 <p>Ellison’s testimony follows Wang’s, which took place on Friday — the fourth day of the trial. Here are the latest live updates by @innercitypress, from inside the courtroom on day 4:</p>
 <h2 class="wp-block-heading" id="wang-s-testimony">Wang’s testimony</h2>
 <ul>
  <li>Alameda had to “Allow Negative” privileges on FTX’s platform.&nbsp;</li>
  <li>This allowed Alameda to trade more funds than it had on its account.&nbsp;</li>
  <li>Alameda has a large line of credit, and it could trade faster than other accounts.&nbsp;</li>
  <li>Alameda could withdraw more fiat and crypto than it had on its account; it withdrew $8 billion.</li>
  <li>Wang said these funds came from FTX’s customer deposits.&nbsp;</li>
 </ul>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">AUSA: What is this a photo of?<br>Gary Wang: Sam at his desk in Hong Kong. It's where I talked to him.<br>AUSA: GX 1475. <br>[Again, Inner City Press will work to obtain and upload some of these asap, like https://t.co/6lT8kMy3kt pic.twitter.com/DYESZlw5we</p>— Inner City Press (@innercitypress) October 6, 2023
   </blockquote>
  </div>
 </figure>
 <ul>
  <li>Bankman-Fried, or SBF, asked Nishad and Wang to create this ‘backdoor code’ in July 2019 — two months after FTX was founded.&nbsp;</li>
  <li>Alameda had another account with FTX under a different name – Cottonwood Trading.&nbsp;</li>
  <li>In 2020, Alameda’s negative balance was more than FTX’s revenue.&nbsp;</li>
  <li>Alameda’s total line of credit was $65 billion.</li>
  <li>No other customer had credit with FTX upwards of $1 billion.&nbsp;</li>
  <li>SBF told Alameda to pay off Genesis’s loans using FTX’s customer funds.&nbsp;</li>
 </ul>
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  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> SBF trial day 4: witness recounts Alameda’s $65b credit line and alleged unlimited FTX withdrawals
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/what-to-expect-when-ftx-founder-sam-bankman-fried-s-trial-resumes-for-day-5-tbt65504.html">https://thebittimes.com/what-to-expect-when-ftx-founder-sam-bankman-fried-s-trial-resumes-for-day-5-tbt65504.html</a></p>

What to expect when FTX founder Sam Bankman-Fried’s trial resumes for day 5

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