FTX’s Sam Bankman-Fried slept on bean bag at $35M Bahamas apartment, lived with 9 employees: Witness

Sam Bankman-Fried took naps on a bean bag whilst dwelling with 9 different workers at a $35 million rental within the Bahamas, a witness testified at the FTX founder’s legal trial on seven counts stemming from the cave in of the crypto-exchange.

The witness, Adam Yedidia, who labored as a developer at FTX, testified that Alameda, Bankman-Fried’s privately managed hedge fund, paid for the rental.

Prosecutors had been exploring the ordinary dwelling preparations and the splendid way of life Bankman-Fried were dwelling within the Bahamas that was once allegedly paid for, illegally, with buyer and investor cash. Prosecutors have alleged Bankman-Fried used different buyer price range for actual property, speculative investments and political donations.

Yedidia mentioned he were tasked with solving a malicious program in FTX’s machine in June 2022 when he came upon Alameda allegedly owed FTX shoppers $8 billion. He referred to as it regarding.

“Because if they spend the money that belongs to the FTX customers, then it’s not there to give the FTX customers should they withdraw,” Yedidia mentioned.

Five months later, when Yedidia mentioned he heard Alameda had used buyer cash to pay off loans, he mentioned he resigned.

“Because if Alameda was repaying its loans with FTX customer money, that implied that it didn’t have money of its own to repay the loans with, which means the money was simply gone,” he mentioned.

Yedida additional testified that Bankman-Fried informed him that he and Alameda CEO Caroline Ellison had begun a romantic courting in early 2019. Ellison pleaded to blame in December to cord fraud, securities fraud and cash laundering.

Friday’s listening to additionally featured testimony from FTX co-founder Gary Wang, who has already admitted he dedicated crimes.

“Did you commit financial crimes while working at FTX?” assistant US Attorney Nicholas Roos requested Wang.

“Yes,” Wang replied, including he dedicated cord fraud, securities fraud and commodities fraud.

“Did you commit these crimes by yourself or with other people?” Roos requested.

“With other people,” Wang mentioned, figuring out, amongst others, Sam Bankman-Fried.

The trial of Bankman-Fried started Tuesday and may just last as long as six weeks. He faces seven counts of fraud, conspiracy and cash laundering, and has pleaded now not to blame to all counts. If convicted, he may just face a sentence of as much as 110 years in jail.