FTX deposits were deposited into an account controlled by Alameda for months, Yeddia said.

Adam Yedidia, a college classmate of Sam Bankman-Fried and a former FTX employee, continued to testify on Oct. 5, the second day of the former FTX CEO Bankman-Fried's trial in New York. Yedidia, on the other hand, had his immunity respected and was testifying for the prosecution.

Under cross-examination by Assistant U.S. Attorney Daniel Sassoon, Yedidia told the court that he started a business for Alameda Research and then worked as a software developer for FTX from January 2021 to November 2022. In the Bahamas, Yedidia was one of the “house guys” – ten people who shared a large apartment in a luxury Albany resort. He reports “informally” to former FTX director of engineering Nishad Singh and FTX co-founder Gary Wang and Bankman-Fried.

As Yedidia understands, when Alameda Research trades in FTX, the ultimate beneficiaries of the profits are Bankman-Fried and Wang.

Yedidia said he was involved in writing code to automate customer deposits and withdrawals from FTX. Bankman-Fried was “very involved” in the project. Yedidia initially thought that customer deposits would go to FTX's bank accounts, but FTX had difficulty opening bank accounts and the deposits were transferred to North Dimension Inc., which is controlled by Alameda Research.

Yedidia said he did not know that customers were instructed to send deposits to the North Dimension account and that, as far as he was aware, it was controlled by Alameda. Singh or FTX settlement chief Ray Salame told him about the arrangement.

“Sometime in late 2021,” FTX managed to open a bank account and clients had the option to send money to “FTX Digital Markets,” Yedidia said. After that, he said, he knew some of the customer deposits went into a controlled account at Alameda Research.

It is tracked in an internal FTX database in an account called “Fiat at FTX.com”, which contains information, not deposits. The customer's deposit must be equal to the amount of the liability in “Fiat at FTX.com”, Yedidia explained.

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Yedidia In late 2021, he learned that the automation code he helped with had a bug. As a result of the error, customer terminations reduced the liability recorded in “Fiat at FTX.com”, as it were, but did not reduce Almeida Research's liability to FTX as it should have.

“Gary [Wang] or Nishad [Singh]” He told Jedediah about his mistake, and he told Bankman-Fried about it. This error inflated Almeida Research's liability by $500 million after about six months, and was not corrected for another six months, or until “around June 2022.” Yedidia said it fixed the error by mid-June 2022.

According to Yedidia, Bankman-Fried Bankman-Fried, the former CEO of Alameda Research Caroline Ellison, Wang and Singh instructed to correct the mistake after a meeting on “full accounting of the two companies” – FTX and Alameda Research.

When Yeddia corrected the error, Alameda Research's liability, reflected in the “Fiat at FTX.com” account, was listed as $16 billion. After the overhaul, Alameda Research's liability was reduced to $8 billion. This figure is visible to other people in the organization.

Adam Yedidia, SBF snitch deleted his X account. @AdamyeDD10070

Homie should take this L to the grave for the rest of his life. You lived with the guy, you went to college with the guy and you can't wait for his guilt to be proven before you turn on him. Smdh

— Martin Shkreli (e/acc) (@wagieeacc) October 4,

Yedidia expressed concern about the large remaining liability to Bankman-Fried, who assured him that the company was “bulletproof last year” and will be “bulletproof” again in six months to three years. Yedidia took “bulletproof” to say she was in good financial health.

Yedidia testified that “the people of the house” used the Signal messaging app to communicate. Used Signal to deliver customer deposit and withdrawal automation error correction documents to Bankman-Fried. Yedidia said the app is set to automatically delete messages after a certain period of time.

Yedidia Banman-Fried explains that maintaining messages is “everything's weak point.” “If regulators find something they don't like in the messages, it's bad for the company,” Yedidia said, summarizing Bankuman-Fried's words. “He didn't use those exact words, but that's what he said,” Yedidia said.

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