On the third day of the trial of Sam Bankman-Fried (SBF), founder of FTX, several revelations came to light. One significant revelation was that SBF urged his employees to use the Signal app and set the auto-delete feature for their messages, emphasizing that keeping messages had downsides.
Adam Yedidia, who served directly under Nishad Singh and lived with SBF as his roommate, testified about SBF’s preference for not retaining messages. Yedidia also mentioned that SBF consulted him regarding his intention to date Caroline Ellison, an employee of Alameda Research, despite Yedidia’s advice against it due to traditional HR policies prohibiting relationships between colleagues.
Despite some of his weaknesses, Yedidia noted SBF’s willingness to take risks and push boundaries. It’s important to note that Yedidia was granted immunity in exchange for his testimony.
Day Three of SBF’s Trial Unearths Surprising Insights
Additionally, Gary Wang, co-founder of FTX, testified that SBF allowed Alameda Research to execute orders faster on the FTX platform. Alameda was allowed unlimited fund withdrawals despite maintaining negative balances, which led to substantial withdrawals before FTX faced difficulties.
Looking ahead, Paradigm co-founder and former Sequoia partner Matt Huang is expected to take the stand in the trial.