FTX hid Alameda liabilities in a Korean account.

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FTX hid Alameda liabilities in a Korean account.

According to a lawsuit filed by the Commodities Futures Trading Commission (CFTC), the former CEO of , Sam Bankman-Fried, gave the order to company personnel to transfer Alameda Research’s significant liability with the exchange to “the weird Korean account” in order to hide the company’s liability with Alameda Research. This was done in order to conceal the company’s liability with Alameda Research.

Nishad Singh, who had previously served as the director of FTX Engineering, was the owner of the GitHub account. There have been no allegations lodged against Singh, and it is still unknown whether other executives, if any, had access to the hidden account.

SBF gave the executives of FTX the instruction to send money to an account that he referred to as “our Korean friend’s account” and “the bizarre Korean account.”

According to the CFTC, the Korean account belonged to Alameda but was not affiliated with it. As a result, it was feasible for Alameda’s negative balance to be disguised on FTX ledgers since the Korean account was not associated with Alameda.

The Commodity Futures Trading Commission (CFTC) claims that a piece of code known as “allow negative flag” enabled the Korean account to complete a transaction despite the fact that it lacked the requisite cash to do so.

According to the CFTC, the “Korean account” had access to the same privileges as Alameda’s principal account and sub-accounts, including exemptions from several of FTX’s risk management criteria. These perks included access to the same trading platforms.

Compiled by Coinbold

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