December 23, 2024

How A Secret Software Change Allowed FTX To Use Client Money

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How A Secret Software Change Allowed FTX To Use Client Money

 

In mid-2020, FTX’s chief engineer made a secret change to the cryptocurrency exchange’s software. He tweaked the code to exempt Alameda Research, a hedge fund owned by FTX founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda’s assets if it was losing too much borrowed money.