FTX Secretly Gave Alameda Backdoor Access to Customer Funds, Fraud Trial Reveals
-
FTX insiders revealed a secret "backdoor" mechanism that allowed unauthorized withdrawals of customer funds.
-
The backdoor was linked to Alameda Research and gave them special access to FTX customer reserves.
-
Concerns over this were raised by LedgerX staff in early 2022 but dismissed by FTX leadership.
-
The backdoor is a focus in the trial against Sam Bankman-Fried on fraud charges.
-
Prosecutors say Bankman-Fried misused the backdoor to take customer funds for Alameda Research.