According to court testimony intercepted by BitMEX Research, FTX’s former technical chief Gary Wang admitted in court that the amount of FTX’s insurance fund was not true.

Are FTX insurance funds generated by random numbers?

Gary Wang, former chief technology officer of FTX, was asked whether this figure is accurate: "FTX insurance fund has a total of US$5.5 million, and FTT of US$5 million."

Gary Wang denies this claim:

First of all, there is no FTT in the FTX insurance fund, only USD. And the published figures are different from those in the database.

Where do the numbers published by the FTX Insurance Fund come from?

Gary Wang said that was a false number.

In fact, the actual amount is lower.

The displayed amount is derived from FTX's total trading volume over the past 24 hours. The code will multiply this number by a number (approximately 7500) and then divide it by 1 billion to get the number displayed on the website.

Netizens ridiculed: It sounds...

Netizens scoffed: This sounds like how many protocols calculate their TVL. (Another note: This is a joke mocking the DeFi protocol)

This article SBF Trial｜Former Chief Technology Officer Gary Wang: FTX insurance funds are all fake and random numbers are generated first appeared on Chain News ABMedia.