In a surprising turn of events, employees at the bankrupt FTX platform discovered that Alameda had a secret backdoor code to withdraw billions of dollars from customer funds. The Wall Street Journal confirmed this revelation. Some U.S.-based FTX employees were aware of the situation.

In the spring of 2022, LedgerX employees also found a backdoor that allowed Alameda Research, a third-party company, to access customer funds. Concerns were raised but not addressed, and a senior manager was fired.

FTX employees learned about this issue when LedgerX employees reported their findings. LedgerX's Chief Risk Officer, Julie Schoening, informed her boss, Zach Dexter, who discussed it with Nishad Singh, co-principal architect of FTX #Trading Ltd.

Details of their discussions remain unclear, but sources suggest Dexter believed the issue was resolved when Singh removed the code. After an internal investigation, LedgerX stated that none of its employees were aware of the code allowing Alameda Research to seize FTX client assets, strongly denying any such claims.

Schoening was fired in August 2022 due to risk management problems at #FTX . Allegedly, she and FTX agreed to a $5 million settlement, but the paperwork was never finalized due to FTX's collapse in November 2022.