Tag: FTX

What to expect when FTX founder’s trial resumes for day 5

Disgraced FTX founder Sam Bankman-Fried’s trial will resume for its fifth day on Oct. 10, with prosecutors expected to question his ex and former colleague, Caroline Ellison. The trial, which is set to last six weeks, will continue on Tuesday with key testimony expected from Ellison, who is regarded as a star witness to the goings-on at Alameda Research, where she held the title of CEO. Alameda, a sister firm to FTX, allegedly siphoned off $8 billion in customer money from FTX and used that cash for personal means. Ellison,…

Sam Bankman-Fried Ordered ‘Special Privileges’ for Alameda, FTX Co-Founder Gary Wang Testifies

Taking the stand in an ill-fitting black suit, Wang, who co-founded both companies with Bankman-Fried, said that in July 2019, just shortly after the exchange opened for business, Bankman-Fried directed him to write code for FTX that would let Alameda’s account balance fall below zero. It was a secret feature that no other customer of the crypto exchange had, the insider-turned-government witness said. Source

Former FTX Co-Founder Gary Wang Exposes SBF’s Shady Dealing with Alameda at Trial

Wang’s testimony was part of a plea agreement with prosecutors stemming from his guilty plea filed in December 2022. In a riveting turn of events at the ongoing criminal trial of FTX founder Sam Bankman-Fried (SBF), Gary Wang, the company’s former chief technology officer, unveiled startling revelations about the inner workings of the exchange and its sister company Alameda Research. On October 5th, day three of the trial, Wang took the stand after a short break, disclosing critical information regarding the collaboration between FTX and Alameda, noting that they were…

Hack Saga Linked to Sam Bankman-Fried’s FTX Deepens as THORSwap Pauses Trades

CryptoX – Cryptocurrency Analysis and News Portal “Yesterday, following a careful evaluation of the situation and consultation with advisors, legal counsel, and law enforcement, the decision was made to temporarily transition the THORSwap interface into maintenance mode,” THORSwap developers said in a tweet. Original Source The post Hack Saga Linked to Sam Bankman-Fried’s FTX Deepens as THORSwap Pauses Trades appeared first on CryptoX. CryptoX Portal

FTX employees were aware of Alameda’s backdoor code

The Wall Street Journal has confirmed that Alameda Research used a secret backdoor in FTX, the defunct exchange, to withdraw billions of dollars of customer funds, and some of the exchange’s U.S.-based employees were aware of it. In spring 2022, a group of employees at LedgerX discovered a backdoor in the system that allowed Alameda Research, a third-party company, to transfer customer funds.  Although concerns were raised about the “special code,” it was not addressed, and a senior manager was later fired.  FTX staff became aware of the situation after LedgerX employees reported the…

SBF was ‘very resistant’ to investors on FTX board: Paradigm co-founder

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Sam Bankman-Fried was “very resistant” to having investors join the board of directors at FTX, claims Matthew Huang, the co-founder and managing partner of crypto investment firm Paradigm. Paradigm and a number of venture capital firms including Sequoia, Temasek and BlackRock were burned by their funding of the now-bankrupt crypto exchange with all facing scrutiny — and subsequently issuing statements — on their investment in FTX. Testifying on the third day of Bankman-Fried’s trial in a New York Federal Court, Huang claimed Bankman-Fried believed having investors on FTX’s board of…