FTX, a crypto derivatives exchange, has been accused of allowing Alameda Research to withdraw billions in customer funds through a backdoor in the exchange. According to a Wall Street Journal report, some of FTX’s employees in the U.S. were aware of the backdoor, but the problem was never fixed. The team, who worked for LedgerX, the crypto derivatives exchange bought by FTX in 2021, discovered the backdoor while examining whether the code for FTX’s main exchange could be used in the U.S. LedgerX’s chief risk officer Julie Schoening raised the concerns to her boss Zach Dexter, who then discussed it with Nishad Singh, one of FTX founder Sam Bankman-Fried’s closest deputies.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	8
People	Zach Dexter, Sam Bankman-Fried, Julie Schoening, Nishad Singh
Companies	LedgerX, Wall Street Journal, Sam Bankman-Fried, FTX, Alameda Research
Currencies	None
Securities	None