FTX's Alleged Secret Backdoor: Billions in Customer Funds Stolen

Insiders from cryptocurrency exchange FTX have revealed that a concealed mechanism, allegedly linked to Alameda Research, allowed the unauthorized withdrawal of billions in customer funds. Despite being reported to higher-ups, no action was taken. The "backdoor" is now a focal point in the ongoing trial against FTX's former head, Sam Bankman-Fried, who faces charges of fraud. Prosecutors argue that Bankman-Fried misappropriated FTX customer funds by embedding "special features" in the platform's code, giving Alameda Research unprecedented access. Concerns about FTX's risk management protocols were raised by a team from LedgerX, but no substantial action was taken.