Gary Wang, cofounder and chief know-how officer for FTX, centered on a single piece of code throughout his testimony: “allow_negative.” SBF didn’t code at FTX, so Wang was accountable for orchestrating the entire technical adjustments on the firm. The code “allow_negative” allowed for Alameda Analysis’s balances to be detrimental, a considerably uninspired identify that was by no means meant for the general public’s eyes.
The code mainly allowed Alameda Analysis to have an infinite line of credit score, which was in the end paid by FTX buyer funds. In the long run, Alameda borrowed $14 billion from FTX, an quantity it couldn’t repay. Alameda was at all times framed by SBF as a liquidity supplier within the crypto world, however actually, FTX prospects have been offering the liquidity. This can be a key piece of the prosecution’s case, and Wang pointed to the software program in place that allowed it to occur.
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