Amidst the ongoing legal proceedings, a fresh wave of testimonies has emerged against Sam Bankman-Fried (SBF) and his operations. In this particular instance, outside the courtroom, a former engineer at Alameda Research, the sister hedge fund of FTX, has come forward with revelations of substantial losses in trading funds totaling at least $190 million.
Aditya Baradwaj, the individual in question, has provided a detailed account of the events in a post titled “The Hacks,” shedding significant light on the severe repercussions stemming from inadequate security practices within the company.
Alameda Research’s Poor Operational Practices Exposed
The collapse of FTX and Alameda Research has since attracted substantial attention, with numerous reports highlighting the lack of robust risk management structures at both entities.
Notably, bankruptcy lawyer John Ray III famously described the situation as a “complete failure of corporate controls.”
Concrete evidence provided by Baradwaj paints a disturbing picture of the company’s operational practices. Baradwaj revealed that Alameda Research’s founder and CEO, SBF, prioritized speed above all else, neglecting engineering and accounting standards considered customary in both technology and financial services industries.
Consequently, the company engaged in minimal code testing and incomplete balance accounting, only implementing safety checks for trading when necessary.
One of the most alarming revelations pertains to storing blockchain private keys and exchanging Application Programming Interface (API) keys in plaintext within a file accessible to several employees.
While this approach allowed for remarkable developer velocity, it also exposed the company to frequent secu
Go to Source to See Full Article
Author: Ronaldo Marquez
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
