Sam Bankman-Fried replied ‘Yep’ when FTX’s top lawyer told him there was no legal justification for taking customer funds, attorney testified

• A top attorney for FTX testified Thursday in the trial of Sam Bankman-Fried.
• Can Sun said he was “shocked” by a $7 billion hole in FTX, while Sam Bankman-Fried was unsurprised.
• SBF asked for possible “legal justifications” for using customer money, but Sun said there were none.

FTX’s corporate attorney testified in court against his former boss, Sam Bankman-Fried, in Manhattan federal court on Thursday, sharing details about the company’s bankruptcy in November 2022.

Can Sun said he was appalled to learn that Alameda Research, FTX’s hedge fund sister company, had special privileges over all other customers on the crypto exchange and that the companies, both owned by Bankman-Fried, had co-mingled funds taken from customers without their consent.