Former engineer at Alameda Research, Aditya Baridwaj, has claimed that FTX’s sister hedge fund lost at least $190 million due to avoidable scams. Baridwaj alleges that the firm’s agility led to major security incidents occurring every few months. One example cited is a trader at Alameda losing over $100 million after clicking on a malicious link. Another incident involved yield farming on a blockchain of questionable legitimacy, resulting in losses of over $40 million. Baridwaj also highlighted the firm’s disregard for industry-standard practices, such as code testing and balance accounting. He revealed that private keys and exchange API keys were stored in plaintext, leading to further security breaches. Baridwaj’s revelations come as former Alameda CEO Caroline Ellison testifies against FTX founder Sam Bankman-Fried in his fraud trial. Bankman-Fried has pleaded not guilty to the charges.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 0 |
| People | Adam Yedidia, Caroline Ellison, Sam Bankman-Fried, Gary Wang, Aditya Baridwaj |
| Companies | FTX, Effective Altruism, Cointelegraph, Google, Alameda Research |
| Currencies | google search, Samsunspor Fan Token, alameda research, HairyPlotterFTX, inSure DeFi |
| Securities | None |
