| In SBF
Trial Paradigm
Investor Huang
Says All $278
Million Lost
After Lies
About Alameda
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Oct 5 –
In the SBF trial on October 5,
between the cross examination
of Adam Yedidia and the
beginning of Gary Wang,
Paradigm's Matt Huang was
subject to direct and cross.
The government's goal seemed
to be to show an investor
victim, and their
expectations. Inner City Press
thread:
AUSA: When did
you become aware of FTX?
Huang: 2019. AUSA: When did
you consider investing? Huang:
2020. I spoke with Sam
Bankman-Fried. By Zoom.
Huang: It was the
Series B, equity financing. We
were concerned at the lack of
formal board, and the
entanglements with
Alameda.
AUSA:
What's this? Huang: Emails
between SBF and Paradigm. We
expressed concerns about value
leakage to Alameda. We were
concerned about front running
and access to the order
book.
AUSA: What was
the liquidation engine?
Huang: It closes
the customer's position, when
the price moves against him,
while he still has money left.
We were told FTX's was best in
class.
AUSA: Were you
told Alameda was exempt from
the liquidation engine? Huang:
No AUSA: If you had
known the Alameda was using
FTX customers' money would
that have been a concern?
Huang: Yes. It is understood
the customers' deposits are
sacred.
SBF's lawyer:
Objection!
Judge Kaplan:
Overruled. AUSA: Were
you told that FTX was
transferring money from this
round of financing to Alameda?
SBF's lawyer:
Objection! Judge
Kaplan: Overruled.
Huang: No. And we
would not have invested. We
expect people to do what they
tell us they are going to
do. Huang: We invested
$278 million. We've marked it
to zero. AUSA: No further
questions.
Cross examination
of Huang by SBF's lawyer David
Lisner
SBF's Lisner: You
were are Sequoia before?
Huang: Yes. SBF's Lisner: It's
the leading fund in Silicon
Valley? AUSA: Objection. Judge
Kaplan: Sustained
SBF's Lisner: Do
you think every $20 billion
company have a board of
directors? AUSA: Objection!
Judge Kaplan: Sustained. SBF's
Lisner: Did you raise it?
Huang: Yes. SBF was
resistant. SBF's lawyer:
But you invested without a
board? Huang: Yes.
SBF's Lisner: So
there not being an FTX board
did not stop you from
investing? Judge Kaplan:
Obviously... Come to the
sidebar. [The lawyers head up.
This we cannot hear.
Then, witness is
done. Thread(s) will continue
After more than a
day of jury selection, late
morning on October 4 the
twelve and six alternate were
selected. Inner City Press
live tweeted the voir dire and
now, more on Substack here
and all on Patreon here
Literary take here
***
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