BlocksInform
NEW YORK – FTX’s general counsel “never approved” the crypto exchange lending customer funds to sister firm Alameda Research, he told the jury on day 12 of Sam Bankman-Fried’s criminal fraud trial.
Can Sun, who was the general counsel at FTX from August 2021 to the time of the exchange’s collapse in November 2022, said “absolutely not” when asked Thursday whether he signed off on Alameda’s use of FTX customer funds.
This is a developing story and will be updated throughout the day. Read all of CoinDesk’s SBF trial coverage here.
Sun testified he believed FTX customers' funds were kept segregated from the company’s own funds, based on conversations he’d had with Bankman-Fried.
Assistant U.S. Attorney Danielle Sassoon walked Sun through FTX’s terms of service and other public statements supporting the Department of Justice’s thesis that FTX misappropriated customer funds.
Various documents said FTX customer funds were supposed to be “ring-fenced” from FTX’s own funds, Sun said.
Recommended for you:
- How the Top 1% Covers Crypto
- It’s Time for a Purpose-Built Disclosure Framework for Crypto
- Ethereum Upgrade Could Make It Harder to Lose All Your Crypto
Sun, who testified under a non-prosecution agreement, also described how he tracked loans to FTX and Alameda executives – but his record of the loans did not match another document the DOJ showed him, he said.
Throughout his testimony, he reiterated that he did not know customer funds were involved in those loans.
