During the ongoing criminal trial of Sam Bankman-Fried, Adam Yedidia, a former FTX employee and close friend of the ex-CEO, took the stand to reveal startling financial mismanagement and personal details. Yedidia, who previously interned at Alameda Research and later joined FTX’s Hong Kong office in early 2021, lived alongside Bankman-Fried at the Albany Place luxury resort in the Bahamas as part of the executive team.
$8 Billion Code Glitch
Yedidia testified that he discovered a critical bug in Alameda’s code, which understated its liabilities by approximately $8 billion. When he raised concerns with Bankman-Fried, the former CEO assured him everything was fine. Yedidia fixed the error himself and briefed Bankman-Fried via Signal, but the conversation was set to auto-delete and is now lost. Yedidia recalled Bankman-Fried advising him to use the auto-delete feature, saying it was too risky to keep messages.
Misuse of Customer Funds
More damningly, Yedidia said he received a call informing him that Alameda was using customer deposits to repay its debts. He described this as a “flagrantly wrong thing” and resigned soon after. Since leaving, he has had no contact with Bankman-Fried. Yedidia further disclosed that FTX would routinely transfer client funds to Alameda’s account without the clients’ knowledge, corroborating the prosecution’s core fraud allegations.
Intimate Relationship with Alameda CEO
Yedidia also shed light on Bankman-Fried’s personal ties with Caroline Ellison, CEO of Alameda. Bankman-Fried confided in Yedidia about their casual intimate encounters and asked for advice on whether to pursue a relationship. Yedidia advised against it, adding a personal dimension to the case that may hint at emotional influences on business decisions.
UK Trader’s Loss
Another witness, UK trader Marc-Antoine Julliard, testified that he lost approximately £100,000 due to the FTX collapse. He had trusted Bankman-Fried and considered FTX a reliable exchange. Relying on SBF’s posts on X (formerly Twitter) suggesting smooth withdrawals, he delayed pulling his funds—a decision he now calls a “bad mistake.”
Yedidia testified under an immunity agreement with federal prosecutors, which protects him from prosecution for any wrongdoing in the case as long as he tells the truth. The trial is expected to continue for weeks, with more revelations likely to emerge.