According to TechFlow, a few days before FTX filed for bankruptcy, SBF tweeted to assure customers and investors that the exchange and its assets were in good condition. FTX co-founder Gary Wang testified in court on Friday that this was a lie, saying "FTX is not good, and its assets are not in good condition. The funds belong to the customers, and the customers did not allow us to use it for other things." For more than four hours in the witness stand, Gary Wang recounted the last few days before FTX's collapse and detailed how he and SBF implemented a multi-billion dollar plan that made FTX's collapse inevitable.

Gary Wang testified on Friday under questioning by Assistant U.S. Attorney Nicolas Roos about the secret mechanism that allowed funds to flow from FTX to Alameda. He said SBF asked Alameda to add a back-end feature that "allows negative balances." Although some large customers also obtained credit lines at FTX. But except for Alameda, no one has a credit line of more than $1 billion, and most customers have much smaller credit lines of only millions of dollars. Alameda's line is $65 billion.

In addition, SBF also instructed Alameda not to be subject to the liquidation rules that apply to other FTX accounts. Gary Wang explained that accounts that were at risk of losses sold their positions to market makers before the losses occurred. The function exists to protect exchanges and other customers.