Alameda Research, the parent company of FTX, has been accused of using customer funds without their knowledge. According to The Wall Street Journal, some U.S.-based employees of FTX reportedly knew that the exchange had a backdoor that allowed Alameda to withdraw customers’ funds. The employees discovered the backdoor while examining the code used by FTX International for FTX US. Julie Schoening, the Chief Risk Officer at LedgerX, brought the issue to the attention of Zach Dexter, the company’s CEO, but the issue was not fixed. Schoening was retrenched in August 2022. LedgerX’s new owners, Miami International Holdings, denied that their employees knew of the backdoor. They stated that following an internal investigation, they found no evidence that any of their employees were aware of the code enabling Alameda to take FTX customer assets.

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Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	8
People	Caroline Ellison, Julie Schoening, Zach Dexter, Nishad Singh
Companies	FTX, LedgerX, Alameda Research, Miami International Holdings
Currencies	None
Securities	None