Report: FTX employees were aware of Alameda’s backdoor code
The Wall Street Journal has confirmed that Alameda Research used a secret backdoor in FTX, the defunct exchange, to withdraw billions of dollars of customer funds, and some of the exchange’s U.S.-based employees were aware of it. In spring 2022, a group of employees at LedgerX discovered a backdoor in the system that allowed Alameda Research, a third-party company, to transfer customer funds. Although concerns were raised about the “special code,” it was not addressed, and a senior manager was later fired. You might also like: FTX scandal: court selects 12 jurors for high-profile SBF fraud case FTX staff became aware of the situation after LedgerX employees reported the “special Features ” they had uncovered. Once the issue was brought to the attention of LedgerX’s chief risk officer, Julie Schoening, she notified her boss, Zach Dexter, who discussed the backdoor with Nishad Singh, the co-lead engineer of FTX ...