SBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion Hole

Published: Oct. 19, 2023, 4:45 a.m.

b"The courtroom was abuzz on Wednesday as financial and technical experts took the stand in the ongoing criminal trial against Sam Bankman-Fried. Accounting professor Peter Easton, a standout witness, presented a detailed analysis showing that Alameda had spent customer funds on VC investments, real estate, and political and charitable donations. Easton, who had previously worked on high-profile cases like Enron and Worldcom, said that by the end, the gap between what FTX owed to customers and what it had on hand was $8.8 billion.\\nThe defense, led by attorney David Lisner, attempted to challenge Easton's methods. Lisner questioned the accounting of the fiat@ftx internal account, which tracks customer deposits. Easton admitted to lumping amounts owed to customers from FTX\\u2019s bank accounts with what was owed to customers from Alameda's bank accounts, giving the defense an opportunity to question his accuracy.\\nThe day also saw other witnesses, including a former FTX lobbyist and a Google employee, both of whose relevance was questioned by Judge Kaplan. The judge criticized the prosecution for wasting time with witnesses who seemed to offer little to the case.\\nCatch up on Unchained\\u2019s previous coverage:\\xa0\\n\\nSBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF\\u2019s Family\\n\\nSBF Trial, Day 2: DOJ Says Sam Bankman-Fried \\u2018Lied\\u2019 While Defense Claims His Actions Were \\u2018Reasonable\\u2019\\n\\nSBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact\\n\\nSBF Trial, Day 4: SBF\\u2019s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda\\u2019s Special Privileges\\n\\nSBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?\\n\\nSBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'\\n\\nSBF Trial, Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?\\n\\nSBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges\\n\\nSBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender\\n\\nSBF Trial, Day 10: Defense Struggles to Discredit Nishad Singh's Testimony\\n\\nDid Sam Bankman-Fried Have Intent to Defraud FTX Investors?\\n\\nWhy These Lawyers Say It's Over for SBF-But His Only Hail Mary Is to Testify\\n\\nHere\\u2019s How Sam Bankman-Fried\\u2019s High-Stakes Trial Could Play Out\\n\\nSBF Trial: How Sam Bankman-Fried\\u2019s Lawyers Might Try and Win His Case\\n\\nThe High-Stakes Trial of Sam Bankman-Fried Begins: What to Expect\\n\\n\\nLearn more about your ad choices. Visit megaphone.fm/adchoices"