SBF Trial | Former CTO Gary Wang: FTX Insurance Fund is Fake, Randomly Generated

According to court testimony excerpted by BitMEX Research, former FTX CTO Gary Wang admitted in court that the amount of FTX's insurance fund was not accurate.

Are FTX Insurance Funds Generated by Random Numbers?

Former FTX CTO Gary Wang was asked if the statement "FTX insurance fund has a total of $5.5 million, with $5 million in FTT" is accurate.

Gary Wang denied this claim:

Firstly, there is no FTT in the FTX insurance fund, only USD. Additionally, the disclosed numbers do not match what is in the database.

Where Do the Numbers for FTX Insurance Fund Disclosure Come From?

Gary Wang stated that those numbers are fake.

In reality, the actual amount is lower.

The displayed amount comes from the total trading volume of FTX in the past 24 hours, the figure is multiplied by a single-digit around 7500, and then divided by 1 billion to arrive at the number displayed on the website.

Netizens Mock: Sounds Like...

Netizens mock: This sounds like the way many protocols calculate their TVL. Note: This is a joke mocking DeFi protocols.