FTX co-founder: The function for Alameda to steal customer funds was implanted in FTX's computer system as early as 2019

2023-10-07 08:22:15

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ChainCatcher news, according to CryptoPotato, FTX co-founder Gary Wang revealed more details about the corrupt relationship between Alameda Research and its exchange during the trial of Sam Bankman-Fried on Friday.

Wang testified that the functionality required for Alameda to siphon off customer funds was embedded in FTX's computer system as early as 2019.

Additionally, Alameda received three privileges on FTX compared to other customers. One of these was allowing Alameda to trade with more funds than it actually had in its account. As Wang previously testified, Alameda could withdraw unlimited funds from FTX.

This functionality was later exploited, withdrawing $8 billion worth of fiat and cryptocurrency, exceeding the amount the trading firm held in its accounts—roughly the same gap FTX faced last November when it failed to meet customer withdrawal requests. Wang clarified that the extra funds came from FTX customers who had not explicitly chosen to lend their funds.

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FTX SBF Alameda

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