Odaily Planet Daily broke the news🔥: FTX co-founder Gary Wang revealed the improper relationship between Alameda Research and FTX exchange during the Sam Bankman-Fried fraud trial. According to Wang, Alameda had already implanted the function of stealing customer funds into the FTX computer system in 2019. 😱
Additionally, Alameda enjoys three privileges at FTX, one of which allows Alameda to trade with more funds than he actually has in his account. Wang has testified that Alameda could withdraw unlimited funds from FTX. 💰
This feature was later exploited to withdraw $8 billion worth of fiat and cryptocurrencies, in excess of what the trading firm held in its accounts. This is roughly the same gap FTX faced last November when it failed to fulfill customer withdrawal requests. Wang clarified that the additional funds came from FTX clients who did not explicitly choose to lend their funds. 🔍
Additionally, Alameda enjoys three privileges at FTX, one of which allows Alameda to trade with more funds than he actually has in his account. Wang has testified that Alameda could withdraw unlimited funds from FTX. 💰
This feature was later exploited to withdraw $8 billion worth of fiat and cryptocurrencies, in excess of what the trading firm held in its accounts. This is roughly the same gap FTX faced last November when it failed to fulfill customer withdrawal requests. Wang clarified that the additional funds came from FTX clients who did not explicitly choose to lend their funds. 🔍