Brankruptcy Attorneys: Sam Bankman-Fried Ordered FTX Cronies to Program a Backdoor to Access Clients’ FundsAlana Mastrangelo 16 Jan 2023
Sam Bankman-Fried had a “secret” $65 billion backdoor into FTX clients’ funds, attorneys claim, alleging that the disgraced FTX founder and Democrat super donor had ordered a co-founder to insert a secret backdoor into FTX code to funnel clients’ money into his hedge fund. The attorneys claim that SBF “bought planes, houses, threw parties, made political donations,” with client money.
Bankruptcy lawyers testified on Wednesday that Sam Bankman-Fried ordered FTX co-founder Gary Wang to create a “secret” backdoor to his trading firm Alameda Research, enabling him to “borrow” $65 billion in customer-funded loans, according to a report by Business Insider.
The cash was then used for luxury purchases, FTX lawyer Andrew Dietderich said, telling the court that Bankman-Fried “bought planes, houses, threw parties, made political donations.”
In addition to being the founder of the cryptocurrency exchange FTX, Bankman-Fried was also known as a Democrat super donor.
Dietderich explained to the court that Wang was instructed to create a “backdoor, a secret way for Alameda to borrow from customers on the exchange without permission.”
“Wang created this back door by inserting a single number into millions of lines of code for the exchange, creating a line of credit from FTX to Alameda, to which customers did not consent,” Dietderich said. “And we know the size of that line of credit. It was $65 billion.”
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https://www.breitbart.com/tech/2023/01/16/brankruptcy-attorneys-sam-bankman-fried-ordered-ftx-cronies-to-program-a-backdoor-to-access-clients-funds/
