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SBF Allegedly Asks FTX Co-Founder to Create Secret Backdoor

FTX's attorney has alleged that Sam Bankman-Fried, the former CEO of the collapsed crypto exchange FTX, asked co-founder Gary Wang to create a secret backdoor that enabled Alameda Research to acquire $65 billion in customer funds from FTX without their permission.

Sam Bankman-Fried
Sam Bankman-Fried

Gary Wang Confesses to Guilt in FTX Scandal

Gary Wang, the co-founder of FTX, has confessed his guilt in the scandal and is cooperating with the investigation. Andrew Dietderich, an FTX attorney, reported in Delaware bankruptcy court that Wang had created a line of credit from FTX to Alameda using customer funds without consent.

FTX Scandal Continues with New Revelations

As the investigation into the collapse of FTX continues, new revelations have emerged. The Commodity Futures Trading Commission (CFTC) put forward similar allegations in December 2022 and Reuters reported in November that SBF had secretly transferred $10 billion in funds to Alameda Research.