Alameda was spending more trading than FTX was making in revenue: Co-founder

Government witness Gary Wang finished answering prosecution’s questions Friday, testifying that Alameda enjoyed a $65 billion line of credit


Artwork by Crystal Le


$100 million — that’s how far in the red Alameda Research’s FTX account went thanks to its so-called “special privileges” on the exchange, according to co-founder Gary Wang, now a testifying witness in the trial of former CEO Sam Bankman-Fried.

Day four of the Bankman-Fried criminal trial, where he faces seven counts of fraud and conspiracy, started with Wang taking the stand again after the prosecution began their questioning on Thursday. 

Wang, who pleaded guilty in December 2022 to four counts, testified that Alameda Research’s FTX account was granted secret permission to “allow negative,” meaning it could trade even with no balance. 

Read more: Sam Bankman-Fried trial live updates: FTX backstop fund was ‘fake,’ Wang testifies

This was going on as early as late 2019, at Bankman-Fried and Nishad Singh’s request, Wang added. Singh, who also pleaded guilty, was FTX’s director of engineering. 

In 2020, Wang discovered in the database that Alameda’s trading account balance was in the red more than FTX’s revenue, he told the jury, which was around $150 million. Alameda’s account balance was about negative $200 million, or more, Wang testified. 

Alameda’s line of credit was $65 billion, Wang added, also noting that “maybe a dozen” others had credit lines over $1 million and no one else was in the billion-dollar range. 

Bankman-Fried, who once again appeared in court wearing a suit and seated between attorneys, was fidgeting throughout the testimony. He was also observed using a computer, which he has been allowed to use since jury selection began on Tuesday.

Friday’s testimony is expected to wrap at around 3 pm ET, Southern District of New York senior judge Lewis Kaplan confirmed with prosecution earlier in the week. Court will recess for the weekend and resume on Oct. 10. The trial is expected to last six weeks.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png


With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.


Launching cryptocurrencies the old fashioned way may soon make a return


Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug


NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.


EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down