FTX Lawyer Says SBF Requested "Secret Backdoor" From Gary Wang

FTX's attorney testified in bankruptcy court that SBF paid FTX-co 

Founder Gary Wang $65 billion to create a backdoor entrance for Alameda into FTX.

According to the FTX lawyer, Sam Bankman-Fried urged FTX co-founder Gary Wang to develop a "hidden" backdoor that allowed Alameda Research to borrow $65 billion from users of the now-defunct cryptocurrency exchange.

According to FTX attorney Andrew Dietderich, Gary Wang, who has admitted to his role in the collapse of FTX, was instructed to construct a "backdoor" enabling Alameda to borrow money from exchange clients without authorization.

Alameda had backdoor access to the money belonging to FTX customers.

Without the clients' permission, Wang issued a line of credit from FTX to Alameda by putting a single number into millions of lines of code for the exchange, according to Andrew Dietderic's testimony in Delaware bankruptcy court. According to the lawyer, the credit line's ceiling was $65 billion, according to an NYPost story.

The CFTC has previously accused the creators of the crypto exchange of making similar claims. How much money Alameda had access to was not disclosed by the CFTC. At the same time, reports claimed that SBF transferred $10 billion between the two businesses while $2 billion went unreported.

SBF refuted all allegations that he had built a backdoor access in FTX on his press tour later in the year.

SBF accessed money via a backdoor and spent it on fancy items.

Alameda utilised the $65 billion in back door access payments, according to additional testimony from FTX's attorney in court, to buy homes, jets, give parties, and donate money to political campaigns. According to court documents, SBF spent close to $40 million in just nine months on lodging, travel, meals, and luxuries. Employee benefits at the FTX office in the Bahamas included free travel to any destination in the world. Just a few months prior to FTX declaring bankruptcy, millions of dollars were spent on meals and entertainment.

SBF has launched a lawsuit in an effort to stop FTX creditors from seizing his $450 million worth of Robinhood shares.