FTX's Alameda Backdoor Scandal: Nightmare for Former Customers

Several employees at FTX reportedly knew about a backdoor access that Alameda Research, the hedge fund of ex-FTX CEO Sam Bankman-Fried, had into FTX customer wallets months before the collapse of the crypto exchange. The employees raised the issue with FTX's senior leadership, but it was allegedly ignored. The backdoor allowed Alameda to withdraw money from FTX and have a negative balance of up to $65 billion worth of crypto tokens. Bankman-Fried is currently facing a federal fraud trial, accused of using stolen customer funds to support his crypto empire.