Gary Wang, co-founder of FTX, testified in the SBF trial that in November 2022, FTX's customer balance was equal to the assets held in the hot wallet, with one important exception: a hidden debt of $8 billion called "fiat@". As customers began withdrawing assets from FTX in November 2022, SBF asked Gary Wang to calculate how much money Alameda Research needed to deposit into the exchange to cover the outflow of funds.
The balance of the fiat@ account in FTX's internal database has been reallocated to an account called "[email protected]", which has been granted special privileges so that Alameda Research does not have to pay interest on its credit limit. Wang also confirmed that SBF knew that FTX's financial situation was more transparent to the public and investors than Alameda's financial situation.
All Comments