Finally, a backdoor would indeed have been created in the system of FTX, and it is Sam Bankman-Fried himself who would have supervised its creation in cooperation with Gary Wang, the co-founder of the exchange. According to FTX’s attorney, this hidden line of code concealed $65 billion in secret transactions between FTX and Alameda Research.
https://cryptoast.fr/backdoor-sam-bankman-fried-creee-pour-ftx-depasse-65-milliards-dollars/
65 billion dollars hidden?
On November 12, the day after the resignation of Sam Bankman-Fried and the bankruptcy of FTX, the legal teams of the latter accused the platform’s ex-CEO of implementing a backdoor into the company’s accounting systemwhich he denied.
These charges against him had been corroborated by various testimonies from former FTX employees shortly after. However, this having never really been verified in a concrete way, these serious allegations had more or less ended up being forgotten, drowned in the torrent of information concerning the management of the exchange. The question was briefly raised again by the journalist Tiffany Fongwho had questioned SBF on this subject, to which he had merely replied: “ anyway i don’t know how to code this “.
And yet, 2 months after these allegations, FTX’s lawyer, Andrew Dietderichasserts that a secret door has indeed been coded into FTX’s system, but above all, that it was equivalent to more than 65 billion dollars, a staggering sum. Concretely, these funds were withdrawn in a hidden way by Alameda from the vaults of FTX.
Moreover, although SBF himself was probably not in a position to code such a thing, he was nevertheless the one who would have ordered its creation. And he would have asked Gary Wang thatthe co-founder of the exchange:
“Mr. Wang created this backdoor by inserting a single digit into millions of lines of code for the exchange, creating a line of credit from FTX to Alameda that customers did not consent to. […] And we know the size of that line of credit. It was $65 billion. »
👉 To deepen – France: what is the impact of the fall of FTX on the PSANs?
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The noose is tightening for former FTX management
Although Sam Bankman-Fried has always denied the accusations evoking a desire on his part to create a backdoor in the FTX system, the Commodity Futures Trading Commission (CFTC) of the United States had nevertheless filed a complaint to this effect last month, citing “irregular business practices” between FTX and Alameda Research.
In his last known statement, made via Substack on January 12, SBF denied any charges against him. According to him, it is a margin position between the 2 companies that would have led to the insolvency of the exchange:
“So when Alameda became illiquid, so did FTX International, because Alameda had an open margin position on FTX; and the run on the bank transformed this illiquidity into insolvency. »
Last November, according to Reutersthe amount potentially transferred in a concealed manner between the 2 companies was around 12 million dollars. According to FTX’s lawyer, the actual sum would therefore be much larger.
Caroline Ellison and Gary Wang being directly involvedit is likely that the latter have more information to provide on this subject insofar as they both pledged to cooperate with the authorities in charge of the FTX investigation.
👉 Read also – Threats and sidelining: the ex-president of FTX.US reveals the real reasons for his resignation
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Source: New York Post
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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