FTX staff found 'backdoor' for withdrawing billions before collapse: report

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FTX staff found 'backdoor' for withdrawing billions before collapse: report
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Today's Business Headlines: 10\/04\/23

Sam Bankman-Fried warned girlfriend ‘I don’t feel happiness’ in list of pros and cons to dating him: bookAnna Wintour’s staff fumed SBF will ‘never step foot in fashion again’ after rejecting Met Gala invite: bookFTX staffers found a so-called backdoor at its sister crypto trading firm Alameda Research that was allegedly used to withdraw billions of dollars of customer funds months before the crypto firm imploded, according to a report.

At the time, Outen, who worked for LedgerX — a Bitcoin and Ether-derivatives exchange FTX acquired in 2021 — was digging through FTX’s code to determine whether its main Bahamas-based operation could be used in the US, where regulations were much tighter. Anna Wintour’s staff fumed SBF will ‘never step foot in fashion again’ after rejecting Met Gala invite: book

Schoening relayed the team’s findings to LedgerX boss Zach Dexter, who raised the problems to FTX’s director of engineering Nishad Singh, sources familiar with the matter told The Journal. Other sources told the news site that the messages were taken out of context, and Schoening simply irritated FTX’s higher-ups by identifying the company’s grave issues.

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