Gary Wang, co-founder of FTX, revealed the fraudulent relationship between Alameda Research and the FTX exchange at Friday's Sam Bankman-Fried hearing. 😱
According to Wang, Alameda was given three privileges at FTX:
1. The "allow negative" feature, allows Alameda to trade with more funds than is in his account.
2. Alameda can withdraw unlimited funds from FTX.
3. Alameda has credit access of $65 billion from FTX, while other clients can only access credit of a maximum of $1 billion.
Wang claims that this feature was then abused to withdraw $8 billion in fiat and crypto beyond the funds Alameda had in its account. Wang also said that he knew Alameda had had a negative balance since 2019.
What do you think about this case? Will this have a major impact on the crypto industry? Come on, discuss it in the comments column! 💬
According to Wang, Alameda was given three privileges at FTX:
1. The "allow negative" feature, allows Alameda to trade with more funds than is in his account.
2. Alameda can withdraw unlimited funds from FTX.
3. Alameda has credit access of $65 billion from FTX, while other clients can only access credit of a maximum of $1 billion.
Wang claims that this feature was then abused to withdraw $8 billion in fiat and crypto beyond the funds Alameda had in its account. Wang also said that he knew Alameda had had a negative balance since 2019.
What do you think about this case? Will this have a major impact on the crypto industry? Come on, discuss it in the comments column! 💬