FTX's Alameda Backdoor Scandal: Nightmare for Former Customers
TL;DR
Several employees at FTX reportedly knew about a backdoor access that Alameda Research, the hedge fund of ex-FTX CEO Sam Bankman-Fried, had into FTX customer wallets months before the collapse of the crypto exchange. The employees raised the issue with FTX's senior leadership, but it was allegedly ignored. The backdoor allowed Alameda to withdraw money from FTX and have a negative balance of up to $65 billion worth of crypto tokens. Bankman-Fried is currently facing a federal fraud trial, accused of using stolen customer funds to support his crypto empire.
Topics:businesscryptocurrency#alameda-research#cryptocurrency#customer-funds#fraud-trial#ftx#sam-bankman-fried
- FTX Workers Knew About Alameda's Backdoor into Customer Funds: Report Gizmodo
- Ex-FTX engineer testifies he alerted SBF of bug that revealed Alameda liabilities: CNBC Crypto World CNBC Television
- Sam Bankman-Fried ordered 'special privileges' for Alameda account on FTX — Gary Wang Cointelegraph
- FTX gave SBF's hedge fund unlimited line of credit the same day he denied special treatment Business Insider
- FTX's Former Customers Face 'Nightmare' Recovery Process PYMNTS.com
- View Full Coverage on Google News
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