Tag: FTX

FTX used Python code to fake its insurance fund figure: Gary Wang

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Crypto exchange FTX used hidden Python code to misrepresent the value of its insurance fund — a pool of funds meant to prevent user losses during huge liquidation events — according to testimony from FTX co-founder Gary Wang.  In a damning new testimony on Oct. 6, FTX’s former chief technology officer, Gary Wang, said that FTX’s so-called $100 million insurance fund in 2021 was actually fabricated, and also never actually contained any of the exchanges’ FTX tokens (FTT) as claimed. Instead, the figure shown to the public was calculated by…

What you need to know about FTX star witness Caroline Ellison

The trial of Sam Bankman-Fried, founder of collapsed crypto exchange FTX, will enter its fifth day on Oct. 10 when one of the most anticipated witnesses takes the stand. Caroline Ellison was CEO at FTX’s sister firm, Alameda Research, as well as Bankman-Fried’s on-and-off-again girlfriend. The 28-year-old is expected to take the stand on Tuesday, picking up where another former Bankman-Fried confidant, Gary Wang, leaves off once his testimony concludes. Like Wang, Ellison was privy to most of the goings-on at Bankman-Fried’s once-thriving crypto conglomerate. The news of former Alameda…

FTX hacker switches strategy after THORSwap suspends service

The individual behind the 2022 attack on FTX has altered their strategy for laundering their stolen Ethereum into Bitcoin. On-chain analyst Lookonchain noticed on Oct. 6 that the person behind last year’s FTX hack had stopped using THORChain for moving their stolen assets and had begun to exploit the Threshold Network instead. Lookonchain’s data indicated that the attacker converted over 3,000 Ether (ETH), valued at $4.9 million, into tBTC via the Threshold network. Since then, per Lookonchain, the attacker has successfully converted about 75,636 ETH, valued at $124 million, into…

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