Benzinga - Gary Wang, former chief technology officer at FTX, on Tuesday provided significant insights into the financial operations of Alameda Research and its association with FTX.
His testimony raised concerns, particularly regarding the handling of the FTX (CRYPTO: FTT) tokens and the company's financial transparency.
Wang confirmed Alameda Research did not reflect withdrawals from FTX in the fiat account.
He also acknowledged while Alameda Research had a line of credit of $65 billion, it did not draw down nearly that amount.
This comes amidst the backdrop of the digital asset industry's evolution, with events like Benzinga's Future of Digital Assets conference on Nov. 14 aiming to address the transformative power and challenges of the cryptocurrency world.
Wang also discussed the creation and trading of FTT, a token he helped develop.
When questioned about its price in 2022, Wang confirmed Binance agreed to buy a stake sold in November of that year.
Wang's testimony further revealed he was unaware of what Alameda Research could or couldn't do with the funds deposited in its bank accounts.
He also confirmed Sam Bankman-Fried had assured Bitshine that Alameda Research was treated the same as all other customers.
Also Read: Caroline Ellison Drops Bombshell: Bankman-Fried Wanted To Be President
On the topic of FTT, Wang admitted that initially it was not placed on Alameda Research's balance sheet due to the inability to sell it at the current market price.
However, upon SBF's insistence, it was added to secure loans from Genesis, a decision Wang found misleading.
Wang also touched upon his personal financial dealings, revealing he received more than $200 million in loans from Alameda, of which he used $200,000 to purchase a house.
When questioned about the legalities of these loans, Wang admitted he did not consult with lawyers before signing the promissory notes.
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