Adding a new twist to FTX’s collapse and bankruptcy, Bitcoin Archive affirmed that FTX had a “backdoor” built into its accounting software by Sam Bankman-Fried (SBF). This route had been used to shift assets running into billions of dollars without giving alerts to staff or external auditors, media reports said.
It said this “backdoor” channel was used by SBF and to move $10 billion to Alameda without bothering about any accounting red flags or internal compliance provisions.
It said the “backdoor” was established with bespoke software, giving SBF the ability to execute commands to alter company’s financial records without notifying anyone.
John J. Ray III Is New CEO
Meanwhile, FTX announced John J. Ray III, will be the new CEO. Ray is a renowned restructuring specialist with expertise in having handled the liquidation of Enron Corp, one of the world’s largest bankruptcies.
FTX founder Bankman-Fried reportedly shifted $10 billion of customer funds stealthily to his trading company, Alameda Research run by his girlfriend, Caroline Ellison.
SBF in the Bahamas
Reports also confirmed FTX founder Sam Bankman-Fried is in the Bahamas. This puts an end to speculations on Twitter that he flew to Argentina in South America after FTX filed for bankruptcy.
Crypto experts urged all FTX account holders who had linked their FTX accounts to bank accounts to change bank account passwords immediately as the accounts are vulnerable to hacking.
