Sam Bankman-Fried Built ‘Backdoor’ To Transfer Money Outside Of FTX: Reuters

According to two persons who knew the situation, Sam Bankman-Fried created a “backdoor” to his FTX exchange to alter financial records and shift cash covertly, Reuters reported this case.

The report said that he employed custom software to prevent external auditors from being informed of changes to FTX books. It meant that when $10 billion in funds were transferred to FTX’s sister trading arm Alameda, no alarms were triggered.

When questioned by Reuters, Sam Bankman-Fried, who has since resigned as CEO, denied the existence of such a “backdoor.” The $10 billion transfer was described as disagreed with, he added.

This news makes FTX users even more worried because hackers have recently stolen more than $600 million from the exchange, but there are rumors that FTX is intentionally keeping customers’ money.

Coincu will continue to update the situation related to Sam Bankman-fired trial live update, you can find out more information through this article.

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