Julie Schoening, former chief risk officer at FTX-owned LedgerX, was terminated in August 2022 after raising concerns about special privileges granted to FTX’s affiliated trading firm Alameda Research. In May 2022, Schoening’s team discovered code showing that Alameda received special treatment, such as being able to have a negative balance as high as $65 billion. Despite her boss Zach Dexter believing the problem was addressed, the special treatment ultimately remained in place. Schoening threatened to sue over the dismissal and reached a tentative $5 million settlement agreement with FTX over her firing, though the deal failed to be completed before FTX collapsed. The special backdoor access granted to Alameda is a central focus of the criminal fraud charges against founder Sam Bankman-Fried. FTX and Alameda’s inner workings have come under intense scrutiny after FTX collapsed in November 2022.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	8
People	Jim Outen, Julie Schoening, Zach Dexter, Sam Bankman-Fried, Nishad Singh
Companies	FTX, LedgerX, Wall Street Journal, Alameda Research
Currencies	US Dollar, alameda research, FintruX, Ethereum, Bitcoin
Securities	None