Tag: FTX

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…

Who are the key witnesses in FTX founder Sam Bankman-Fried’s trial? 

Sam Bankman-Fried’s trial has entered its third day, as the FTX founder is facing seven different charges of wire fraud and money laundering. After jury selection ended on day 2, both sides geared up with key witnesses to present their case.  Senior District Judge Lewis A. Kaplan is presiding over the case, and Assistant U.S. Attorney Nicolas Roos is leading the prosecution. The defense is being led by Mark Cohen.  So far, three witnesses have been questioned and cross-examined. However, more than 22 key witnesses are set to appear throughout…

FTX Co-Founder’s Trial Commences: Defense Shifts Blame to Ex-Girlfriend and Binance CEO for Exchange’s Collapse

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FTX co-founder Sam Bankman-Fried’s (SBF) defense team tried to place blame on his ex-girlfriend, Caroline Ellison, and Binance CEO Changpeng Zhao (CZ) for the collapse of the cryptocurrency exchange. Mark Cohen, SBF’s lawyer, argued during the opening statements that SBF did not defraud anyone and acted in good faith, shifting responsibility for the alleged misconduct onto CZ, media reports said. Cohen contested the portrayal of SBF as a “cartoon villain,” describing him as a math nerd who abstained from drinking and partying. The defense asserted that SBF believed loans from…

Anthropic’s capital boost may secure full recovery for FTX customers

The recent surge in Anthropic’s valuation, following a new funding round, could spell financial recovery for FTX creditors. As artificial intelligence enterprise Anthropic recently securing additional investment, potentially elevating its worth to $30 billion, FTX customers may find reason to be optimistic. This development comes to light due to FTX founder Sam Bankman-Fried’s prior investment in the AI firm. Anthropic has successfully procured additional investment, with reports indicating that Google and undisclosed parties may be involved. Google, an existing investor with approximately a 10% share in the company as of…

FTX exploiter moves $36.8M in Ether as Sam Bankman-Fried’s trial starts

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The crypto wallet address linked to the FTX exploiter moved roughly $36.8 million worth of Ether (ETH) in the last 24 hours amid the ongoing court trials of the defunct crypto exchange’s ex-CEO, Sam Bankman-Fried (SBF). Accounts linked to FTX and FTX.US were drained of $600 million on Nov. 11, 2022, hours after the crypto exchange had filed for Chapter 11 bankruptcy. At the time, FTX general counsel Ryne Miller informed traders about the hack caused by malware: “FTX has been hacked. Chat is open. Please don’t go to the FTX site,…

FTX founder lied says prosecutors, defense blames Ellison and Bitcoin crash

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Federal prosecutors told jurors that Sam Bankman-Fried (SBF) lied to the world about FTX’s finances but confided in Ellison and his inner circle, while defense attorneys moved to shift the blame on Alameda’s former CEO and Bitcoin volatility during opening statements on trial day 2. On day 1 of the voir dire, eight prospective jurors cited the 60 Minutes interview with author Michael Lewis. A handful referenced Bernie Madoff and one juror’s company lost money to FTX/Alameda. 18 jurors -12 primary and 6 alternates, were assigned from a pool of…