2023-01-17
Andrew
Dietderich, an FTX attorney told the Delaware bankruptcy court that Sam
Bankman-Fried asked his co-founder Gary Wang to create a secret backdoor that
enable Alameda Research to take customer funds without their permission. It is a method that SBF used to take customer
funds.
The size of credits according to Dietderich was $65 billion. SBF borrowed $10 billion from
FTX to Alameda. Only $6 billion could withdraw from FTX on November 2022
because SBF did not have enough money to return funds to customers.
SBF, Gary Wang co-founder of FTX, and Caroline Ellison former CEO of
Alameda Research were pleaded guilty for federal charge of fraud.
