Can Sun, during his trial in the FTX collapse, stated that he was aware of a significant cash gap between the balance sheets of FTX plus its affiliate Alameda, and the actual assets in their accounts. However, according to the ex-lawyer, the founder of the site, Sam Bankman-Fried, was not too concerned about the proper conduct of business. When the time came to pay the debts, Bankman-Fried asked Sun to come up with a legal justification for the delay.
The question about the amount of assets in the accounts of FTX and Alameda Research was asked by a large management company Apollo Capital. When the loss of assets was discovered, Kang Sun did consider various options to delay the response to the request, however, given the rules of the site, he would not be able to hide the loss of $8 billion in funds.
“Sam Bankman-Fried was not surprised at all. But Nishad Singh (technical director) seemed to me simply dead. It was as if the soul had been taken out of him,” said Sun.
A former FTX executive said Singh quit the next day. The former technical director has already spoken in court, saying that he tried to discuss the issue of the cash gap with the founder of the exchange, but did not find understanding.
Source: Bits
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