Posted 10/5/2023, 11:10:00 AM
FTX Employees Knew of Backdoor Allowing Alameda to Take Customer Funds, LedgerX Found
- FTX employees in the U.S. knew about backdoor allowing Alameda to withdraw customer funds
- LedgerX team examining FTX code discovered the backdoor
- Chief risk officer Schoening raised concerns, was fired months later
- Schoening discussed issue with boss Zach Dexter, who told Nishad Singh
- Discovery made as LedgerX examined using FTX code for its U.S. exchange
- News emerges as Bankman-Fried faces trial in New York for wire fraud