FTX One of his attorneys, Andrew Dietderich, announced that Sam Bankman-Fried had ordered the creation of a $65 billion “secret backdoor credit line” in a recent bankruptcy hearing. The backdoor was developed by co-founder Gary Wang and allowed Bankman-Fried to use client funds without their consent.
The shocking news was shared by Dietderich during the hearing on Wednesday. Moreover, this news Sam Bankman-FriedIt came just one day after Publishing a blog post stating that he was innocent of the charges against him.
FTX Founder’s Backdoor Credit Line
Koinfinans.com As we have reported, the size of the FTX scandal seems to increase unpredictably. The collapse of the largest cryptocurrency exchange in the industry marked the last year. Still, the debates are getting bigger every day.
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As FTX’s Chapter 11 bankruptcy hearings continue, Andrew Dietderich, the platform’s attorney, reported on the new developments. Sam Bankman-Fried, hedge fund Alameda Research He reportedly ordered the creation of a $65 billion “secret backdoor line of credit” for Moreover, The New York Post reports that Gary Wang designed the secret funding channel for his co-founder.
“Mr. Wang created this backdoor for the exchange by adding a single number to millions of lines of code, creating a credit line from FTX to Alameda that customers disapprove of,” Dietderich said. “And the size of that line of credit was $65 billion.” continued as.
Dietderich further stated that “the backdoor is a covert way for Alameda to borrow money from customers on the exchange without permission.” This development certainly confirms the initial accusations against Bankman-Fried and created a negative case for the blog post published this week. However, he declared his innocence and stated that he saw mistakes in FTX’s accounting.