Can Sun, former general counsel of FTX, testified on Thursday that Sam Bankman-Fried asked him to craft “legal justifications” to explain why billions of dollars of customer funds were missing, as the exchange struggled to process customer withdrawals in November. Sun said Bankman-Fried wanted to raise money from Apollo to stay afloat, but there were no legal justifications to explain the $7 billion shortfall. Sun was supervised by Bankman-Fried and Dan Friedberg, FTX’s former chief compliance officer, and he was involved in structuring personal loans to FTX insiders totaling $2 billion. Sun said he had no idea that customer funds were being misused and that protecting customer funds was a core value at FTX. This news is concerning as it appears that FTX was not protecting customer funds as they had promised and that Bankman-Fried was looking for ways to cover up their misdeeds. #FTX #CryptoScandal #CustomerFunds #Misuse
You can read more about this topic here: Decrypt: SBF Asked Former FTX Lawyer to Find ‘Legal Justifications’ for Missing Customer Funds
