FTX's Fraudulent Insurance Fund and the Fall of Sam Bankman-Fried
TL;DR Summary
Former FTX chief technology officer, Gary Wang, testified that FTX used hidden Python code to manipulate the value of its insurance fund, falsely claiming it contained $100 million and FTX tokens. The fund was actually calculated by multiplying the daily trading volume of FTX Token by a random number. Wang also revealed that the fund was often insufficient to cover losses, leading to attempts to hide losses by making Alameda Research take them on. Wang admitted to committing wire fraud, commodities fraud, and securities fraud with FTX co-founder Sam Bankman-Fried and others.
- FTX used Python code to fake its insurance fund figure: Gary Wang Cointelegraph
- Kevin O'Leary reveals what investors 'missed' about Sam Bankman-Fried prior to FTX's historic collapse Fox Business
- The Fall Of FTX Chief As Sam Bankman-Fried Faces Fraud Charges | CNBC TV18 CNBC-TV18
- New York trial of crypto king SBF will give industry a black eye MSNBC
- Opinion: Trial of FTX's Sam Bankman-Fried is about more than crypto The Globe and Mail
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