<div class="cryptonews">
 <p class="is-style-lead">Concluding the third week of Bankman-Fried’s <a rel="noopener noreferrer nofollow" title="trial" href="https://thebittimes.com/tag/trial.html">trial</a>, the former general counsel revealed that FTX had a $7 <a rel="noopener noreferrer nofollow" title="billion" href="https://thebittimes.com/tag/billion.html">billion</a> shortage in its customer funds.</p>
 <p>The third week of FTX founder Sam Bankman-Fried’s fraud <a rel="noopener noreferrer nofollow" title="trial" href="https://thebittimes.com/tag/trial.html">trial</a> 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 <a rel="noopener noreferrer nofollow" title="billion" href="https://thebittimes.com/tag/billion.html">billion</a> 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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   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <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) October 19, 2023
   </blockquote>
  </div>
 </figure>
 <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> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sam-bankman-fried-trial-day-12-a-7-billion-hole-in-ftx-s-balance-tbt67034.html">https://thebittimes.com/sam-bankman-fried-trial-day-12-a-7-billion-hole-in-ftx-s-balance-tbt67034.html</a></p>

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

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