<p class="is-style-lead">Concluding the third week of Bankman-Fried’s trial, the former general counsel revealed that FTX had a $7 billion shortage in its customer funds.</p>
<p>The third week of FTX founder Sam Bankman-Fried’s fraud trial concludes today with the testimony of Can Sun, former General Counsel at the company. Sun explains details of how Bankman-Fried lied to regulators and investors about the treatment of customer funds, and how more than $7 billion in customer deposits were mishandled by the former CEO.<br><br>Here are the key highlights from today’s session:&nbsp;</p>
<h2 class="wp-block-heading" id="testimony-of-can-sun-former-general-counsel-at-ftx">Testimony of Can Sun, former General Counsel at FTX</h2>
<ul>
 <li>Bankman-Fried promised Sun that customer funds were segregated from the company’s expenditures.<br></li>
 <li>Sun didn’t approve any customer funds to be loaned to Alameda.<br></li>
 <li>Sun unknowingly lied to investors and regulators about the relationship between FTX and Alameda, saying that both companies were separate and had no financial link.<br></li>
 <li>Bankman-Fried took a $360 million loan from Alameda, while Sun also received a $2 million loan from the company.&nbsp;</li>
</ul>
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   <p lang="en" dir="ltr">AUSA: What was Nishad doing?<br>Can Sun: He was pale and gray. <br>AUSA: What did you conclude from the spreadsheet?<br>Can Sun: That funds had been misappropriated.<br>AUSA: Did you share the info with Apollo.<br>Can Sun: We gave them the spreadsheet.</p>— Inner City Press (@innercitypress) <a href="https://twitter.com/innercitypress/status/1715020436008743328?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 19, 2023</a>
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<ul>
 <li>&nbsp;Sun learned about a $7 billion hole in FTX’s balance sheet during a call with Apollo Asset Management.<br></li>
 <li>Bankman-Fried asked Sun to devise a fake justification for mistreating customer funds to share with Apollo.<br></li>
 <li>Nishad Singh also called Sun to ask him about his exposure to this potential ‘fraud’.<br></li>
 <li>Can Sun immediately resigned the next day.&nbsp;</li>
</ul>
<p>The session concluded with a brief testimony of Robert Boroujerdi, a potential investor who was discussing a deal with FTX. Boroujerdi met with Bankman-Fried on a few occasions, where the defendant promised him that Alameda was an independent entity.&nbsp;</p>

Sam Bankman-Fried trial day 12: A $7 billion hole in FTX’s balance

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