Bankman-Fried’s trial reveals FTX’s $8 Billion deficit, hacker activity and SIM-swap attacks escalate
Summary:
The court trial involving Sam Bankman-Fried, the ex-CEO of FTX, has brought to light an $8 billion deficit in the company before it filed for bankruptcy. Sam's college roommate, Adam Yedidia, a former developer at FTX, has testified about a significant glitch in FTX's programming. Concurrently, a hacker initially holding a large amount of Ether has begun moving funds. Meanwhile, Friend.tech users continue to be targets of SIM-swap attacks, with a single hacker allegedly stealing nearly $385,000 worth of Ether within a day.
Court proceedings have revealed that FTX's $8 billion shortfall before bankruptcy was exposed by Sam Bankman-Fried's college roommate. Simultaneously, the FTX hacker, who initially possessed 175,496 Ether (ETH), equivalent to about $294 million, has begun the unexpected transfer of funds. In related news, four users of Friend.tech have been targeted by SIM-swap attacks.
Former FTX developer and Sam Bankman-Fried's co-lodger, Adam Yedidia, testified in court concerning the financial ties between crypto exchange FTX and Alameda Research, its sister company. This relationship is a crucial element in the alleged fraudulent activities of Bankman-Fried. Yedidia revealed a glitch in FTX's programming that didn't reduce "Alameda's liabilities," leading to an $8 billion discrepancy.
Yedidia, while working for the company, questioned Bankman-Fried about the company's financial security, but received a vague and distressed response. Yedidia resigned from FTX after discovering that "Alameda had used customer deposits to settle its debts."
As Bankman-Fried's trial commences, a crypto wallet tied to the FTX hack moved approximately $36.8 million worth of Ether over the past 24 hours. Accounts linked to FTX lost $600 million on November 11, 2022, soon after the company filed for Chapter 11 bankruptcy. After a nearly ten-month hiatus, the FTX hacker started draining the stolen funds, initiating with a $17.1 million transfer of 10,250 ETH across four addresses.
Bankman-Fried's legal battle in relation to FTX's downfall started on October 3, where he denied all allegations of fraud and money laundering.
Continuing SIM-swap hacks seemingly targeting Friend.tech users allowed a single culprit to steal nearly $385,000 worth of Ether in less than a day. Blockchain detective ZachXBT linked the same hacker to a 24 hour theft of 234 ETH from four unique Friend.tech users. Clearly, this hacker is connected to the major SIM-swap attack victims.
Despite the accumulating attacks on Friend.tech users, the most recent victim alerted others via social media that his wallet has been compromised due to a SIM-swap attack.
Investment and trading are risky endeavors, and this article does not provide investment advice or recommendations. This informational piece encourages self-conducted research before making any financial decisions.
Published At
10/5/2023 7:49:26 PM
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