Gary Wang, FTX's former chief technology officer, said a feature letting the fund, Alameda Research, run a negative balance on the exchange was one of the fund's special privileges that were not disclosed to the public and ultimately let it withdraw $8 billion in FTX customer funds by the time of the exchange's November 2022 bankruptcy.
His lawyer said during opening statements on Wednesday that FTX was a startup, and that Alameda was not just an ordinary customer on the exchange but a market maker, which generated supply and demand in the exchange's early days. Singh has also pleaded guilty and is expected to testify later on at the trial, which could last up to six weeks.
Bankman-Fried spoke with his attorney, Mark Cohen, at the defense table after that comment. The defense is expected to cross-examine Wang later on Friday.