On the third day of the criminal trial for Sam “SBF” Bankman-Fried, the former CEO’s roommate at MIT and FTX developer Adam Yedidia testified about the $8-billion deficit the crypto exchange reported prior to its bankruptcy.
According to reports from Inner City Press from the United States District Court for the Southern District of New York, Yedidia took the stand on Oct. 5 to speak on the connections between the crypto exchange and Alameda Research — one of the key pieces of information at the center of SBF’s alleged fraud. Yedida reportedly informed Bankman-Fried about a bug in FTX’s code that ensured “Alameda’s liabilities did not decrease,” resulting in a roughly $8 billion error.
“[H]ow long until we’re bullet proof again?” Yedida asked SBF. “[He said] six months to three years. He looked nervous.”
Addressing questions by Assistant U.S. Attorney Danielle Sassoon, Yedidia reportedly said his resignation from FTX followed the revelation that “Alameda had used customer deposits to pay its loans”. He also claimed Bankman-Fried asked him to speak on the matter of FTX’s code via the messaging app Signal:
“He told me to use Signal. He told the entire company. It also had auto-delete. […] He said it [auto-delete] was all…
