FTX’s Former General Counsel Denies Approving Loans Using Customer Funds: ‘Absolutely Not

Can Sun, who served as FTX’s general counsel from August 2021 until the exchange’s collapse in November 2022, testified during the fraud trial of Sam Bankman-Fried.

In the trial held in New York, Sun emphatically stated that he never approved the lending of customer funds to FTX’s sister company, Alameda Research. He denied authorizing the use of FTX customer funds for Alameda’s purposes, firmly asserting that he had no knowledge of customer funds being involved in loans. Sun, testifying under a non-prosecution agreement, reiterated that he believed customer funds were segregated from the company’s own funds based on his conversations with Bankman-Fried.

The trial also heard from Robert Boroujerdi, a director at Third Point, an investment firm that had invested $60 million in FTX, but the investment is now worthless. The trial will resume after a week-long break, with the prosecution’s final witnesses expected to testify. The defense, which may present its case, will commence proceedings on Thursday, Oct. 26.