Former FTX CEO Sam Bankman-Fried (SBF) reportedly ordered crypto exchange co-founder Gary Wang to open a $65 billion “secret credit” for Alameda Research, according to FTX attorney Andrew Dietderich.
The attorney released the information during a Delaware bankruptcy court hearing on Jan. 11, according toreportAccording to the New York Post, The alleged credit line was financed by funds of FTX clients, according to Dietderich’s testimony.
“Gary Wang created this back door by inserting a single number into millions of lines of code. to establish a line of credit from FTX to Alameda, which the client did not consent to,” Dietderich told the court.
“And we know the size of that loan, it’s $65 billion.”
On Jan. 12, SBF denied allegations of FTX stealing, stating, “While Alameda lacked liquidity, so did FTX International. liquidity to the point of bankruptcy.”
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