FTX Staff Uncover 'Backdoor' Allowing Alameda to Drain Billions Before Collapse

FTX staff discovered a "backdoor" that allowed Alameda Research to withdraw billions in customer funds before FTX's collapse.

A LedgerX employee flagged the backdoor, but was fired after raising concerns to his supervisor.

The backdoor allowed Alameda's balance to go negative, unlike regular customers who faced auto-liquidation.

FTX's director of engineering, Nishad Singh, allegedly knew of the auto-liquidation issues but did not adequately fix them.

Singh and Caroline Ellison, Alameda's CEO, are expected to testify against Sam Bankman-Fried in his criminal trial this week.