Former Counsel Denies Knowledge of Misused Customer Funds

• Can Sun, ex-general counsel for FTX, asserts he never sanctioned the lending of customer funds to Alameda Research.
• Investment firm Third Point’s $60 million injection into FTX has depreciated to nothing, as revealed in the courtroom.

FTX’s Funds Firestorm Deepens

In the heart of New York, the courtroom resonated with the stern voice of Can Sun, FTX’s former General Counsel, as he unambiguously denied having greenlit the controversial crypto exchange’s customer fund loans to its affiliate, Alameda Research. Serving as the pivotal legal mind behind FTX from August 2021 until its unforeseen debacle in November 2022, Sun was crystal clear, stating he never endorsed Alameda’s access to FTX customer resources.

Unraveling the Financial Web

Diving deep into the mechanics of FTX’s financial operations, Sun underlined his presumption – a belief he nurtured based on discussions with the embattled CEO, Sam Bankman-Fried. He was under the impression that a firm demarcation existed, segregating FTX customers’ funds from the operational finances of the company itself.

Assistant U.S. Attorney Danielle Sassoon meticulously navigated Sun through FTX’s publicly disclosed terms of service, shedding light on the stringent guidelines that seemingly safeguarded FTX customer assets. These documents, Sun acknowledged, clearly emphasized that client funds should be securely “ring-fenced” from the exchange’s proprietary funds.

Yet, the plot thickened when Sun, testifying with the security blanket of a non-prosecution agreement, delved into the loan dynamics involving FTX and Alameda’s top brass. A distinct disparity was evident between his loan records and another set showcased by the Department of Justice, further complicating the narrative. Sun was consistent in asserting his obliviousness to the involvement of customer funds in these financial transactions.

The courtroom drama saw another twist when Robert Boroujerdi, an associate from the reputed investment entity Third Point, unveiled their staggering $60 million commitment to FTX. This substantial financial leap, now tragically valued at nil, underscored the magnitude of the case’s ramifications.

The wheels of justice continue to turn, with the trial set to reconvene on October 26. The prosecutorial team has signaled a swift wrap-up post this hiatus. In the subsequent stages, the defense team’s strategy remains shrouded in mystery, fueling speculations on whether Bankman-Fried will step into the witness box to present his side of the story.