Former engineer at Alameda Research, Aditya Baradwaj, has revealed how lax security practices at the company led to losses of nearly $200 million. Baradwaj disclosed that founder Sam Bankman-Fried prioritized rapid expansion over risk management protocols, resulting in challenges with account reconciliation, trading safety measures, and safeguarding private keys. The company experienced three major security incidents, including a phishing attack that caused over $100 million in damages, a loss of more than $40 million during yield farming on a questionable blockchain, and a security breach where private keys and exchange API keys were leaked, leading to losses exceeding $50 million. Despite these losses, the company made no significant changes to its operational approach. The revelations come amid the ongoing criminal trial of Bankman-Fried, who had planned to shutter the crypto trading firm before its collapse. Insiders have detailed how Bankman-Fried implemented systems that allowed alleged fraudulent acts to flourish.

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	0
People	Caroline Ellison, Aditya Baradwaj, Sam Bankman-Fried
Companies	FTX, Alameda Research
Currencies	HairyPlotterFTX
Securities	None