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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