FTX Insurance Fund Value Inflated by Code, Not Backed by Real Funds: Executive
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FTX's insurance fund value was fabricated using Python code, not real funds according to Gary Wang
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The code multiplied daily trading volume by ~7,500 to generate a fake "insurance fund" value
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The fund was touted in ads and social media but often had insufficient funds to cover losses
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In 2021 a trader exploited a bug, nearly wiping out the fund; Alameda was made to "take the loss"
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Wang claims SBF prompted "allow_negative" balance feature so Alameda could trade with unlimited liquidity
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