On the second day of the trial of former FTX CEO Sam Bankman-Fried, early FTX employee Adam Yedidia continued to testify. Yedidia stated that he worked as a software developer at FTX and that profits from trades made on behalf of Alameda Research went to Bankman-Fried and FTX co-founder Gary Wang.
Yedidia said it was developing software to automate FTX customer deposits and withdrawals and that Bankman-Fried was "very involved" in the project. Yedidia said FTX had difficulty opening a bank account and that deposits were transferred to North Dimension Inc., which is controlled by Alameda Research. He learned that he went to an account named.
Yedidia said FTX managed to open bank accounts in late 2021, and customers have the option to send funds to “FTX Digital Markets.” However, it said it was aware that some customer deposits were still going into accounts controlled by Alameda Research.
In late 2021, Yedidia learned that there was a bug in the automation code it developed. Because of this error, customer withdrawals reduced the liability recorded in "Fiat at FTX.com" but did not reduce Alameda Research's liability to FTX. The error overstated Alameda Research's liability by $500 million in about six months and was not corrected for another six months, Yedidia said.
Yedidia stated that Bankman-Fried instructed him to correct the error after holding a meeting regarding "full accounting" between FTX and Alameda Research. After the error was corrected, Alameda Research's liability was reduced to $8 billion.
Yedidia said Bankman-Fried reassured him about the company's financial health and that FTX will be "bulletproof" in the next 6 months to 3 years "as it was last year."
Yedidia said it was developing software to automate FTX customer deposits and withdrawals and that Bankman-Fried was "very involved" in the project. Yedidia said FTX had difficulty opening a bank account and that deposits were transferred to North Dimension Inc., which is controlled by Alameda Research. He learned that he went to an account named.
Yedidia said FTX managed to open bank accounts in late 2021, and customers have the option to send funds to “FTX Digital Markets.” However, it said it was aware that some customer deposits were still going into accounts controlled by Alameda Research.
In late 2021, Yedidia learned that there was a bug in the automation code it developed. Because of this error, customer withdrawals reduced the liability recorded in "Fiat at FTX.com" but did not reduce Alameda Research's liability to FTX. The error overstated Alameda Research's liability by $500 million in about six months and was not corrected for another six months, Yedidia said.
Yedidia stated that Bankman-Fried instructed him to correct the error after holding a meeting regarding "full accounting" between FTX and Alameda Research. After the error was corrected, Alameda Research's liability was reduced to $8 billion.
Yedidia said Bankman-Fried reassured him about the company's financial health and that FTX will be "bulletproof" in the next 6 months to 3 years "as it was last year."