Dec 16, 2022

FTX caught depositing 8 billion dollars of customer money into secret accounts

Posted by in categories: economics, finance

In a move to protect SBFs hedge fund from losing billions software code was altered.

Sam Bankman-Fried owned Alameda Research, a hedge fund heavily invested in FTX. In move to make sure the hedge fund assets were never sold off, when FTX began to have issues, an engineer secretly changed software code in the FTX system. The software would have sold off all Alameda Research assets, just like any other companies that were owned, in the case of FTX filing for bankruptcy.

Getty Images.

The FTX exchange code was tweaked in the Mid 2020s, to make sure Alameda Research was protected from an automatic sell off of assets, if the hedge fund was losing to much borrowed money.

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