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As Early as 2019, Alameda’s Function of Stealing Customer Funds Had Been Implanted Into FTX’s Computer System

FTX co-founder Gary Wang revealed more details about the corrupt relationship between Alameda Research and its exchange during the trial of Sam Bankman-Fried on Friday. Wang testified that the functionality required for Alameda to steal client funds had been implanted in FTX's computer system as early as 2019. In addition, compared to other clients, Alameda received three privileges at FTX. One of them allowed Alameda to trade with more funds than it actually had in its account.

As Wang previously testified, Alameda could extract unlimited funds from FTX. This feature was later used to extract $8 billion worth of fiat and cryptocurrency, exceeding the amount held by the trading company in its account, which was roughly the same as the shortfall FTX faced when it failed to meet customer withdrawal requests in November last year. Wang clarified that the additional funds came from FTX clients who did not explicitly choose to lend their funds. 

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