Wang Calls $100M Funds Imaginary Claimed by FTX in 2021

The insurance fund claimed by FTX in 2021 was imaginary – Wang

The $100 million insurance fund claimed by FTX in 2021 was imaginary and did not actually include any FTX tokens testified by FTX's former CTO Gary Wang. Hidden Python code was also used to misrepresent the value of the insurance fund along with this. The value of the fund was calculated by multiplying the daily FTX token trading volume by a random number around 7500. This revelation raises questions about the transparency and accuracy of FTX's reported fund values, which was intended to protect users during significant liquidation events. Gary Wang also mentioned the execution features that allowed Alameda Research to trade with vast liquidity. After which an investigation was conducted regarding the practices of FTX.