FTX's Fraudulent Insurance Fund and the Fall of Sam Bankman-Fried
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.
