A backdoor revealed – Sam Bankman-Fried’s legal team bread on the board. Over the weeks, the prosecution has new evidence against their client. It’s the turn of theFTX lawyer to overwhelm the founder of FTX, by revealing theexistence of lines of code quietly siphoning client assets from the crypto exchange to power Alameda.
Alameda: $65 billion at the expense of FTX customers
During the January 11 hearing in the Delaware bankruptcy court, FTX’s lawyer, Andre Dietdericha revealed the existence of a “secret line of credit” for the benefit of Alameda, which the co-founder of the crypto exchange, Gary Wang, allegedly created on the orders of Sam Bankman-Fried.
FTX attorney claims Gary Wang allegedly created a “backdoor” by inserting a single digit into millions of lines of stock market code. Thanks to this back doorAlameda could thus have borrowed up to $65 billionby tapping into the assets of FTX clients, without the users of the crypto platform being informed.
These allegations by Andrew Dietderich echo claims by the CFTC, which accused Gary Wang of creating a secret line of credit and “virtually unlimited” for Alameda Research.
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Overwhelming testimonies: Sam Bankman-Fried persists and signs
FTX’s lawyer thus supports the accusations of regulators and prosecutors against Sam Bankman-Fried, by quantifying the extent of this line of credit granted to Alameda, which the funds of FTX customers financed.
The CFTC carried complaint against the founder of FTX as well as against Gary Wang and the former CEO of Alameda, Caroline Ellison, for these reprehensible practices. Although his two former lieutenants have decided to plead guilty and are collaborating with the investigators and despite these new testimonies, Sam Bankman-Fried does not budge.
In a January 12 post on his Substack, the former CEO of FTX continues to maintain his innocence. He claims he has no not steal funds and that he certainly did not hidden billions. SBF ensures that almost all of its assets were and are still usable to support FTX customers.
For Sam Bankman-Fried, the collapse of FTX is due to bad luck caused by Binance. He repeats certain refrains tirelessly, regardless of new information that sheds light on the fall of the crypto exchange. Will SBF’s defense succeed in supporting their client’s proposals during the trial scheduled for October this year?
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