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He built a special backend endpoint so he could move money from FTX to Alameda without triggering any oversight or audits. They have him on fraud.
by viscanti 4y ago
He built a special backend endpoint so he could move money from FTX to Alameda without triggering any oversight or audits. They have him on fraud.
- ufo 4y agoOr maybe it's just a hidden, poorly internally labeled fiat@ account, with a negative balance of 8bn dollars? (sic)
- viscanti 4y agoIt's a bit of both.
- nroets 4y agoSpecifically, FTX had a margin pool facility. Clients could specify the assets (not just dollars, but also Bitcoin, tether etc) that they wanted to lend in their wallet. Along with APR. It was strictly opt in. The system also reported small amounts ($400m) last time I checked. This misrepresentation is fraud.
- retconn 4y agoRemoving the audit trail and reporting from accounts probably turns this into theft according to the definition of the intention to permanently deprive, which forethought hence mens rea is satisfied by plural compounding acts of concealment.