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21800 | Today the FTX jury suffered through a code review
Wang added that it could place orders faster than other users, and we already saw evidence that users may have unwittingly deposited money into Alameda rather than FTX.
The alleged motivation for this — as Wang had to explain at painful length to a jury — was avoiding liquidation. Liquidation is a way for FTX to manage risk when people were engaging in risky bets on its platform. The cartoon version of futures trading is this: a futures exchange is the middleman that lets strangers bet with each other. It lives between the two ends of the bet, paying the winner and collecting from the loser. If the loser doesn’t pay up, the exchange still has to pay the winner, which is why exchanges require collateral.
Under some circumstances, exchanges will automatically sell collateral to limit their losses. On FTX, this process was automated, Wang testified. It took about 30 seconds to find accounts that needed to be liquidated to minimize FTX’s losses.
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. |
21801 | Today the FTX jury suffered through a code review
The alleged motivation for this — as Wang had to explain at painful length to a jury — was avoiding liquidation. Liquidation is a way for FTX to manage risk when people were engaging in risky bets on its platform. The cartoon version of futures trading is this: a futures exchange is the middleman that lets strangers bet with each other. It lives between the two ends of the bet, paying the winner and collecting from the loser. If the loser doesn’t pay up, the exchange still has to pay the winner, which is why exchanges require collateral.
Under some circumstances, exchanges will automatically sell collateral to limit their losses. On FTX, this process was automated, Wang testified. It took about 30 seconds to find accounts that needed to be liquidated to minimize FTX’s losses.
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. |
21802 | Today the FTX jury suffered through a code review
The cartoon version of futures trading is this: a futures exchange is the middleman that lets strangers bet with each other. It lives between the two ends of the bet, paying the winner and collecting from the loser. If the loser doesn’t pay up, the exchange still has to pay the winner, which is why exchanges require collateral.
Under some circumstances, exchanges will automatically sell collateral to limit their losses. On FTX, this process was automated, Wang testified. It took about 30 seconds to find accounts that needed to be liquidated to minimize FTX’s losses.
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. “The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. |
21803 | Today the FTX jury suffered through a code review
It lives between the two ends of the bet, paying the winner and collecting from the loser. If the loser doesn’t pay up, the exchange still has to pay the winner, which is why exchanges require collateral.
Under some circumstances, exchanges will automatically sell collateral to limit their losses. On FTX, this process was automated, Wang testified. It took about 30 seconds to find accounts that needed to be liquidated to minimize FTX’s losses.
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. “The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. |
21804 | Today the FTX jury suffered through a code review
On FTX, this process was automated, Wang testified. It took about 30 seconds to find accounts that needed to be liquidated to minimize FTX’s losses.
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. “The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. |
21805 | Today the FTX jury suffered through a code review
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. “The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised. |
21806 | Today the FTX jury suffered through a code review
Normal customers — the defense objected to “normal” but was overruled — could be automatically liquidated, but not Alameda. Bankman-Fried “told me a few times to make sure that Alameda’s account is never liquidated on FTX,” Wang said. “The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. |
21807 | Today the FTX jury suffered through a code review
“The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet. |
21808 | Today the FTX jury suffered through a code review
“The code addition was the result of those conversations.”
It’s not Bankman-Fried’s name attached to the change. We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. |
21809 | Today the FTX jury suffered through a code review
We saw a code commit from July 31st, 2019 from Nishad Singh titled “OTC trades and transfers to special accounts.” It was written in Python; the upshot was that it added two columns to the account database; the relevant one for our purposes was “allow_negative.” This was a toggle that, when it was on, let the account go negative. The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. (Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) |
21810 | Today the FTX jury suffered through a code review
The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. (Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money. |
21811 | Today the FTX jury suffered through a code review
The feature was turned on the same day in a second set of code that also had Singh’s username on it. Wang said he supervised.
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. (Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money.
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. |
21812 | Today the FTX jury suffered through a code review
That same day, Bankman-Fried tweeted, “Alameda is a liquidity provider on FTX, but their account is just like everyone else’s.” The tweet was, of course, shown in court. Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. (Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money.
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves. |
21813 | Today the FTX jury suffered through a code review
Never tweet.
It was a tough day for the jury
At first, Bankman-Fried said the change was to pay for expenses for the FTT token, which was issued by FTX, Wang said. (Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money.
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves.
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie. |
21814 | Today the FTX jury suffered through a code review
(Wang described the FTT token as being “sort of equity” in FTX, which I think some crypto lawyers would dispute but would probably make the SEC happy.) But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money.
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves.
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie.
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. |
21815 | Today the FTX jury suffered through a code review
But once it was implemented, the ability to go negative was used for other things including trading and unlimited withdrawals of FTX’s trading fees and customer money.
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves.
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie.
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others. |
21816 | Today the FTX jury suffered through a code review
I am summarizing briefly because Wang had to explain to the jury the difference between a front end and back end, explain futures trading, and read a bunch of stuff into the record, which took a while. It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves.
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie.
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. |
21817 | Today the FTX jury suffered through a code review
It was a tough day for the jury — and probably for Wang, who spoke quickly, perhaps from nerves.
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie.
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said. |
21818 | Today the FTX jury suffered through a code review
The prosecution doesn’t just allege that Alameda had special, secret privileges — it claims they were used to obfuscate basic elements of FTX’s operations that exposed its supposed selling points as a lie.
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. |
21819 | Today the FTX jury suffered through a code review
For instance, FTX advertised that it had a good liquidation system. In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. |
21820 | Today the FTX jury suffered through a code review
In many crypto networks, if someone lost enough money, the exchanges could stick other traders with the losses too. FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund. |
21821 | Today the FTX jury suffered through a code review
FTX touted its automated liquidation as a way to avoid this, so that one customer going bankrupt wouldn’t affect the others.
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said. |
21822 | Today the FTX jury suffered through a code review
FTX lied about how much money was in the backstop fund
In the process of liquidating, FTX would try to sell the collateral on the open market, but if it couldn’t finish, then backstop liquidity providers would step in. These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. |
21823 | Today the FTX jury suffered through a code review
These were market makers, including Alameda, which could be compensated for the losses they take from a “backstop fund,” Wang said.
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. |
21824 | Today the FTX jury suffered through a code review
But FTX lied about how much money was in the backstop fund, Wang said. In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. |
21825 | Today the FTX jury suffered through a code review
In court we saw the code that generated the fake number published on the website: it took the daily trading volume on FTX, multiplied it by a random number, divided it by a billion, and added it to the existing number displayed on the site. It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. |
21826 | Today the FTX jury suffered through a code review
It had nothing to do with the actual amount of money in the insurance fund.
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. |
21827 | Today the FTX jury suffered through a code review
And when there wasn’t enough money in the fund, money was moved there from Alameda’s accounts in order to pay the insurance out, Wang said.
In late 2019, Alameda had a negative balance on FTX. Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. |
21828 | Today the FTX jury suffered through a code review
Because they sat in an open-plan office, Wang heard a trader ask Bankman-Fried if it was okay to keep withdrawing money from that account. Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. |
21829 | Today the FTX jury suffered through a code review
Bankman-Fried said it was okay as long as it was lower than FTX’s total trading revenue. He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. |
21830 | Today the FTX jury suffered through a code review
He was the CEO of both companies at the time.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong. |
21831 | Today the FTX jury suffered through a code review
Alameda also allegedly kept FTX from looking bad by assuming some of its losses.
The amount that Alameda was allowed to go negative began to creep up. Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. |
21832 | Today the FTX jury suffered through a code review
Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. |
21833 | Today the FTX jury suffered through a code review
Around 2019 or 2020, Wang checked the database and discovered that Alameda was negative by about $200 million, which was more than the $150 million FTX made in revenue. That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. |
21834 | Today the FTX jury suffered through a code review
That had to mean Alameda was taking customer money. It surprised him and he says he discussed it with Bankman-Fried, who told him that he just needed to take into account the value of FTT. Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. |
21835 | Today the FTX jury suffered through a code review
Wang said he trusted Bankman-Fried’s judgment and didn’t pursue the issue further. Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges. |
21836 | Today the FTX jury suffered through a code review
Later, though, Alameda’s balance was more negative than FTT and the trading revenue, and Wang had more conversations with Bankman-Fried about it. Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. |
21837 | Today the FTX jury suffered through a code review
Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. |
21838 | Today the FTX jury suffered through a code review
Wang said he knew at the time that Alameda was using FTX’s customers’ funds and that he knew it was wrong.
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) |
21839 | Today the FTX jury suffered through a code review
We heard yesterday about the line of credit Alameda had on FTX, a staggering $65 billion. Today we saw it in the database. The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t. |
21840 | Today the FTX jury suffered through a code review
The line of credit didn’t start that big — Wang testified that Bankman-Fried had asked him to increase it a few times because Alameda kept running into its limits. First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. |
21841 | Today the FTX jury suffered through a code review
First it was “a few hundred million,” then a billion, then even that wasn’t enough. It wasn’t clear how Wang arrived at $65 billion specifically, but he said he’d discussed the number with Bankman-Fried. Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million. |
21842 | Today the FTX jury suffered through a code review
Other customers didn’t have the same privileges.
Alameda also allegedly kept FTX from looking bad by assuming some of its losses. In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. |
21843 | Today the FTX jury suffered through a code review
In 2021, FTX was facing a “several hundred million dollar” loss from an exploit in MobileCoin, Wang said. (This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. |
21844 | Today the FTX jury suffered through a code review
(This seems to have happened in April 2021, though Wang didn’t give a month.) Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. |
21845 | Today the FTX jury suffered through a code review
Bankman-Fried directed him to have Alameda take it on instead, because FTX’s balance sheets were visible to investors and Alameda’s weren’t.
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion. |
21846 | Today the FTX jury suffered through a code review
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. |
21847 | Today the FTX jury suffered through a code review
Yesterday, Paradigm Capital’s Matt Huang showed us the balance sheets he received from Bankman-Fried. They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. |
21848 | Today the FTX jury suffered through a code review
They didn’t include the loss, which should have been included in the second quarter numbers he’d received — they showed $63 million in trading expenses and $63 million in “other expenses” in that quarter, and an estimated profit of $732 million.
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. |
21849 | Today the FTX jury suffered through a code review
“FTX was not fine and assets were not fine.”
By 2022, Alameda’s negative balance on FTX was a cause for concern for Caroline Ellison, Singh, and Wang. They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. But Wang says that in a now-deleted Signal discussion about the memo, he told Bankman-Fried and Singh that they could not shut down Alameda because they couldn’t repay its debt. |
21850 | Today the FTX jury suffered through a code review
They created a spreadsheet to try to figure out how negative Alameda was. The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. But Wang says that in a now-deleted Signal discussion about the memo, he told Bankman-Fried and Singh that they could not shut down Alameda because they couldn’t repay its debt.
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. |
21851 | Today the FTX jury suffered through a code review
The spreadsheet we saw had several pages of attempts to reconcile. Wang figured that Alameda owed FTX about $11 billion. FTX’s revenue at the time was about $1.5 billion.
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. But Wang says that in a now-deleted Signal discussion about the memo, he told Bankman-Fried and Singh that they could not shut down Alameda because they couldn’t repay its debt.
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. |
21852 | Today the FTX jury suffered through a code review
Ellison, Singh, Wang, and Bankman-Fried met in the Bahamas office. Alameda’s lenders wanted their money back, and Bankman-Fried directed the group to pay back the lenders using FTX customer funds. Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. But Wang says that in a now-deleted Signal discussion about the memo, he told Bankman-Fried and Singh that they could not shut down Alameda because they couldn’t repay its debt.
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said. |
21853 | Today the FTX jury suffered through a code review
Bankman-Fried considered shutting down Alameda, and even wrote a long memo about it. But Wang says that in a now-deleted Signal discussion about the memo, he told Bankman-Fried and Singh that they could not shut down Alameda because they couldn’t repay its debt.
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. |
21854 | Today the FTX jury suffered through a code review
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. |
21855 | Today the FTX jury suffered through a code review
Another empty Signal chat, along with its setting to delete messages after a week, was shown to the court. Its members were Ellison, Singh, Wang, and Bankman-Fried.
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. |
21856 | Today the FTX jury suffered through a code review
Things happened quickly for Wang in November. Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. |
21857 | Today the FTX jury suffered through a code review
Wang and Bankman-Fried determined that about $8 billion in customer money was gone, but on November 7th, Bankman-Fried tweeted “FTX is fine. Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said. |
21858 | Today the FTX jury suffered through a code review
Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. |
21859 | Today the FTX jury suffered through a code review
Assets are fine.” Another tweet in the thread said, “FTX has enough to cover all client holdings.”
“FTX was not fine and assets were not fine because FTX did not have enough assets for customer withdrawals,” Wang said.
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified. |
21860 | Today the FTX jury suffered through a code review
While Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls
FTX went bankrupt on November 11th. On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. |
21861 | Today the FTX jury suffered through a code review
On November 12th, Bankman-Fried directed Wang to send customer funds to Bahamanian regulators, Wang said. At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. |
21862 | Today the FTX jury suffered through a code review
At the time, customers couldn’t take their funds off the exchange because FTX had run out of money and its servers had been shut down. Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said. |
21863 | Today the FTX jury suffered through a code review
Bankman-Fried and his father met with lawyers while Wang waited outside with liquidators. The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. |
21864 | Today the FTX jury suffered through a code review
The US lawyers wanted the remaining FTX assets transferred to the US, Wang said.
That is not what he did. Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. |
21865 | Today the FTX jury suffered through a code review
Bankman-Fried told Wang to stall the US lawyers and transfer the funds to Bahamanian regulators, who were more likely to let him stay in control of the company, Wang testified.
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too. |
21866 | Today the FTX jury suffered through a code review
On November 16th, Wang returned to the US and on November 17th, he met with the US government. Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. |
21867 | Today the FTX jury suffered through a code review
Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. |
21868 | Today the FTX jury suffered through a code review
Wang hadn’t been arrested or charged; he offered to cooperate immediately. He pled guilty to various charges a month later. Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. Even without the smoking gun of Signal messages, it’s hard to see how he wasn’t involved. |
21869 | Today the FTX jury suffered through a code review
Wang was clear: he was cooperating because he didn’t want to go to jail. He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. Even without the smoking gun of Signal messages, it’s hard to see how he wasn’t involved. Wang was a dev; the money wasn’t his area. |
21870 | Today the FTX jury suffered through a code review
He was hoping that his assistance means that a sentencing judge will be lenient, he said.
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. Even without the smoking gun of Signal messages, it’s hard to see how he wasn’t involved. Wang was a dev; the money wasn’t his area. And while Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls. |
21871 | Today the FTX jury suffered through a code review
This was the first full account of Alameda’s and FTX’s entanglements I heard in the trial, and it came from a co-owner of both companies. It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. Even without the smoking gun of Signal messages, it’s hard to see how he wasn’t involved. Wang was a dev; the money wasn’t his area. And while Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls. After all, she wasn’t FTX’s CEO. |
21872 | Today the FTX jury suffered through a code review
It was striking, though, that while there was evidence of the computer code that gave Alameda special privileges, there was no evidence of the conversations Wang recounted. Of course Wang turned himself in quickly; sooner or later, someone would find his code — and Singh’s, too.
It also struck me that all of Bankman-Fried’s vanishing messages might not help him as much as he’d hoped. He said too many things in public to too many people. Even without the smoking gun of Signal messages, it’s hard to see how he wasn’t involved. Wang was a dev; the money wasn’t his area. And while Bankman-Fried can try to blame Ellison for some of the decisions, the code shows she couldn’t have made all the calls. After all, she wasn’t FTX’s CEO. And in 2019, she wasn’t Alameda’s CEO, either. |
21873 | A deficit budget for 2024
“After extensive deliberations and negotiations, the House of Representatives on Wednesday (Sept. 27) approved on third and final reading the P5.768-trillion national budget for next year, just before Congress adjourns for a month-long break,” the Press and Public Affairs Bureau of Congress announced on its website, congress.gov.ph. The 310-strong legislative chamber voted 296 against three, with zero abstentions, to approve House Bill (HB) No. 8980 or the 2024 national budget on third and final reading. Almost unanimously.
House Speaker Ferdinand Martin G. Romualdez noted that the budgeting process was marked by rigorous discussions, particularly concerning confidential and intelligence funds, which the House meticulously scrutinized to ensure accountability and responsible utilization. |
21874 | A deficit budget for 2024
“After extensive deliberations and negotiations, the House of Representatives on Wednesday (Sept. 27) approved on third and final reading the P5.768-trillion national budget for next year, just before Congress adjourns for a month-long break,” the Press and Public Affairs Bureau of Congress announced on its website, congress.gov.ph. The 310-strong legislative chamber voted 296 against three, with zero abstentions, to approve House Bill (HB) No. 8980 or the 2024 national budget on third and final reading. Almost unanimously.
House Speaker Ferdinand Martin G. Romualdez noted that the budgeting process was marked by rigorous discussions, particularly concerning confidential and intelligence funds, which the House meticulously scrutinized to ensure accountability and responsible utilization. He lauded “the timely passage of the 2024 General Appropriations Bill (GAB),” stating that it not only “demonstrated the commitment of the House to upholding its constitutional role but also underscored its dedication to serving the Filipino people with transparency and accountability.”
The Department of Budget and Management (DBM) defines the government budget as “the financial plan of the government…which shows what its resources are, and how they will be generated and used over the fiscal period. |
21875 | A deficit budget for 2024
The 310-strong legislative chamber voted 296 against three, with zero abstentions, to approve House Bill (HB) No. 8980 or the 2024 national budget on third and final reading. Almost unanimously.
House Speaker Ferdinand Martin G. Romualdez noted that the budgeting process was marked by rigorous discussions, particularly concerning confidential and intelligence funds, which the House meticulously scrutinized to ensure accountability and responsible utilization. He lauded “the timely passage of the 2024 General Appropriations Bill (GAB),” stating that it not only “demonstrated the commitment of the House to upholding its constitutional role but also underscored its dedication to serving the Filipino people with transparency and accountability.”
The Department of Budget and Management (DBM) defines the government budget as “the financial plan of the government…which shows what its resources are, and how they will be generated and used over the fiscal period. It refers to the income, expenditures and sources of borrowings of the National Government (NG) that are used to achieve national objectives, strategies and programs.”
Section 22, Article VII of the Constitution states that: “The President shall submit to the Congress within 30 days from the opening of every regular session, as the basis of the general appropriation bill, a budget of expenditures and sources of financing including receipts from existing and proposed revenue measures.”
The National Government (NG) budget is the totality of the budgets of all government entities, namely the National Government, the non-financial government-owned and -controlled corporations (which usually includes only the 14 major GOCCs), government financial institutions (GFIs), local government units (LGUs), the social security institutions (the Government Service Insurance System or GSIS, the Social Security System or SSS, the military pensions, PhilHealth, etc. |
21876 | A deficit budget for 2024
It refers to the income, expenditures and sources of borrowings of the National Government (NG) that are used to achieve national objectives, strategies and programs.”
Section 22, Article VII of the Constitution states that: “The President shall submit to the Congress within 30 days from the opening of every regular session, as the basis of the general appropriation bill, a budget of expenditures and sources of financing including receipts from existing and proposed revenue measures.”
The National Government (NG) budget is the totality of the budgets of all government entities, namely the National Government, the non-financial government-owned and -controlled corporations (which usually includes only the 14 major GOCCs), government financial institutions (GFIs), local government units (LGUs), the social security institutions (the Government Service Insurance System or GSIS, the Social Security System or SSS, the military pensions, PhilHealth, etc.), the Oil Price Stabilization Fund, the Bangko Sentral ng Pilipinas, and the Central Bank-Board of Liquidators. |
21877 | A deficit budget for 2024
), the Oil Price Stabilization Fund, the Bangko Sentral ng Pilipinas, and the Central Bank-Board of Liquidators. It is allocated for the implementation of various government programs and projects, the operation of government offices, payment of salaries of government employees, and payment of public debts. These expenditures are classified by expense class, sector and implementing unit of government (dbm.gov.ph).
The sources of appropriations of the annual budget are: 1.) new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA); and 2.) existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) |
21878 | A deficit budget for 2024
It is allocated for the implementation of various government programs and projects, the operation of government offices, payment of salaries of government employees, and payment of public debts. These expenditures are classified by expense class, sector and implementing unit of government (dbm.gov.ph).
The sources of appropriations of the annual budget are: 1.) new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA); and 2.) existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) |
21879 | A deficit budget for 2024
These expenditures are classified by expense class, sector and implementing unit of government (dbm.gov.ph).
The sources of appropriations of the annual budget are: 1.) new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA); and 2.) existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. |
21880 | A deficit budget for 2024
The sources of appropriations of the annual budget are: 1.) new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA); and 2.) existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. |
21881 | A deficit budget for 2024
new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA); and 2.) existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted. |
21882 | A deficit budget for 2024
existing appropriations previously authorized by Congress. Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. |
21883 | A deficit budget for 2024
The DBM calls a budget balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations: a.) the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. Since then, the government has been exerting efforts to maintain the surplus budget policy. |
21884 | A deficit budget for 2024
the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. Since then, the government has been exerting efforts to maintain the surplus budget policy. The surplus budget policy is important to encourage economic growth,” the DBM said. |
21885 | A deficit budget for 2024
the government borrows money either from foreign sources or from the domestic capital market which increases the debt stock of the NG and its debt servicing requirements; b.) the government borrows money from the Bangko Sentral ng Pilipinas; or, c.) the government withdraws funds from its cash balances in the Treasury. Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. Since then, the government has been exerting efforts to maintain the surplus budget policy. The surplus budget policy is important to encourage economic growth,” the DBM said.
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. |
21886 | A deficit budget for 2024
Historically, National Government expenditures have always exceeded total revenues resulting in annual budget deficits, the DBM declared. “Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. Since then, the government has been exerting efforts to maintain the surplus budget policy. The surplus budget policy is important to encourage economic growth,” the DBM said.
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. |
21887 | A deficit budget for 2024
“Thus, the National Government had to resort to borrowing to cover said deficits which resulted in the ballooning of foreign and domestic debts,” the budget office admitted.
“However, in 1994, the government broke the deficit trend by posting a budget surplus of P16 billion through an aggressive privatization and revenue generation program and a prudent expenditure program. Since then, the government has been exerting efforts to maintain the surplus budget policy. The surplus budget policy is important to encourage economic growth,” the DBM said.
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. |
21888 | A deficit budget for 2024
Since then, the government has been exerting efforts to maintain the surplus budget policy. The surplus budget policy is important to encourage economic growth,” the DBM said.
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. |
21889 | A deficit budget for 2024
The surplus budget policy is important to encourage economic growth,” the DBM said.
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph). |
21890 | A deficit budget for 2024
The exhortations of the national budget managers must be quoted word for word to educate the non-economists and questioning common people about how a surplus budget is necessary versus a deficit budget:
“The less the government borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph).
Why then, do we have a deficit budget for 2024? |
21891 | A deficit budget for 2024
Such funds may be used by businessmen to build factories, hire workers, buy equipment and open more employment opportunities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph).
Why then, do we have a deficit budget for 2024?
The national budget for 2024 is at P5.768 trillion, 9.5% higher than the current (2023) budget of P5.268 trillion. Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). |
21892 | A deficit budget for 2024
By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes, buy cars, or support their children’s education. The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph).
Why then, do we have a deficit budget for 2024?
The national budget for 2024 is at P5.768 trillion, 9.5% higher than the current (2023) budget of P5.268 trillion. Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). The 2024 expenditure program is higher by P499.6 billion or a year-on-year growth rate of 9.5% as compared to the 2023 level of P5.268 trillion. |
21893 | A deficit budget for 2024
The government also needs to generate a budget surplus to repay the huge debt it has accumulated over the years. The reduction of the national budget debt will correspondingly lessen government’s requirements for interest and principal payments. This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph).
Why then, do we have a deficit budget for 2024?
The national budget for 2024 is at P5.768 trillion, 9.5% higher than the current (2023) budget of P5.268 trillion. Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). The 2024 expenditure program is higher by P499.6 billion or a year-on-year growth rate of 9.5% as compared to the 2023 level of P5.268 trillion. The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. |
21894 | A deficit budget for 2024
This becomes important particularly during periods of rising interest rates and unstable exchange rates” (dbm.gov.ph).
Why then, do we have a deficit budget for 2024?
The national budget for 2024 is at P5.768 trillion, 9.5% higher than the current (2023) budget of P5.268 trillion. Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). The 2024 expenditure program is higher by P499.6 billion or a year-on-year growth rate of 9.5% as compared to the 2023 level of P5.268 trillion. The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024. |
21895 | A deficit budget for 2024
The national budget for 2024 is at P5.768 trillion, 9.5% higher than the current (2023) budget of P5.268 trillion. Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). The 2024 expenditure program is higher by P499.6 billion or a year-on-year growth rate of 9.5% as compared to the 2023 level of P5.268 trillion. The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024.
During the Congressional budget hearing, Finance Secretary Benjamin Diokno optimistically provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget. |
21896 | A deficit budget for 2024
Observers note that this first budget fully prepared by the current administration accounts for 21.7% of gross domestic product (GDP). The 2024 expenditure program is higher by P499.6 billion or a year-on-year growth rate of 9.5% as compared to the 2023 level of P5.268 trillion. The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024.
During the Congressional budget hearing, Finance Secretary Benjamin Diokno optimistically provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget. Tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, while non-tax revenues are expected to decline from P191 billion in 2023 to P184 billion in 2028, Diokno told the Philippine News Agency (pna.gov.ph, Aug. |
21897 | A deficit budget for 2024
The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024.
During the Congressional budget hearing, Finance Secretary Benjamin Diokno optimistically provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget. Tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, while non-tax revenues are expected to decline from P191 billion in 2023 to P184 billion in 2028, Diokno told the Philippine News Agency (pna.gov.ph, Aug. 10). |
21898 | A deficit budget for 2024
The P5.768-trillion budget, to be supported mainly by P3.5-trillion tax revenues (based on 2023 tax revenue projections), would mean a budget deficit of some P2.268 trillion, to be funded by additional borrowings. This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024.
During the Congressional budget hearing, Finance Secretary Benjamin Diokno optimistically provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget. Tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, while non-tax revenues are expected to decline from P191 billion in 2023 to P184 billion in 2028, Diokno told the Philippine News Agency (pna.gov.ph, Aug. 10).
Diokno said the Finance department aims to gradually reduce net financing or new debt from P1.42 trillion in 2022 to P1.22 trillion in 2024, which will help bring the country’s debt-to-GDP ratio to almost below 60% by 2025. |
21899 | A deficit budget for 2024
This could increase government debt from the current P14.24 trillion (as of July) to P16+ trillion by the end of 2024.
During the Congressional budget hearing, Finance Secretary Benjamin Diokno optimistically provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget. Tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, while non-tax revenues are expected to decline from P191 billion in 2023 to P184 billion in 2028, Diokno told the Philippine News Agency (pna.gov.ph, Aug. 10).
Diokno said the Finance department aims to gradually reduce net financing or new debt from P1.42 trillion in 2022 to P1.22 trillion in 2024, which will help bring the country’s debt-to-GDP ratio to almost below 60% by 2025. And yet, “We worry about our debt-to-GDP ratio in the Philippines, as it stands at about 63% and that’s a little high for us and it is not ideal,” President Ferdinand Marcos, Jr. |
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