- A former employee at Alameda Research has come forward with the company’s guarded secrets.
- He revealed that the company had suffered multiple security incidents, resulting in the loss of hundreds of millions of dollars.
- The employee revealed that SBF neglected standard engineering and accounting practices to move at a blind pace.
Disgraced crypto mogul Sam Bankman-Fried has become synonymous with misconduct and controversies since the collapse of FTX. For weeks, the cryptocurrency industry has been abuzz with the ongoing high-stakes trial as allegations of financial improprieties and fraudulent activities come to light.
As the trial unfolds, SBF’s secrets are no longer confined to the courtrooms. A former employee from Alameda Research has stepped forward with further details about SBF’s incompetencies and undisclosed losses.
SBF’s Need For Speed Cost Alameda Millions
On October 11th, former Alameda Research employee Aditya Baradwaj revealed that the company had suffered three major security breaches, resulting in a staggering $190 million loss.
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Baradwaj, who first took to social media in August to expose the many misconducts by Alameda research and SBF, emphasized the former CEO had a fervent belief in the importance of speed for his startups. His ideology led to disregarding standard safety practices considered essential in financial services organizations, resulting in minimal code testing and improper balance accounting.
The unconventional practices came at a significant cost, resulting in occasional security breaches for the company. The first incident involved an Alameda trader falling victim to a phishing scam during a DeFi transaction, leading to losses exceeding $100 million.
Another incident saw the creator of an illegitimate blockchain yield farm holding $40 million worth of assets hostage on another occasion. A third incident involved the unauthorized transfer of more than $50 million after an outdated file on the company’s plaintext was leaked, presumably by an ex-employee.
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This is not the first time Baradwaj has aired his grievances with Sam Bankman-Fried. The engineer’s latest exposé comes after a reported person slight by the former FTX CEO.
“SBF Stole My Life Savings”
In August, the former employee painted a vivid picture of SBF’s irresponsibility in the rise and fall of FTX and Almeda Research, which resulted in financial devastation for employees, customers, and investors who trusted the former CEO.
The former employee stated that he had lost most of his invested financial assets in the FTX collapse after nearly two years of service at the firm.
Baradwaj explained that SBF took numerous uncalculated risks, including careless management of company funds, wasteful spending, and piles of technical debt, masquerading them under the guise of ‘effective altruism.’
He added that several employees were caught up in SBF’s facade, a vision that seemed to involve using his fortune to improve the world.
On the Flipside
- Baradwaj disclosed that SBF once expressed aspirations of becoming a president of the United States in a conversation with Caroline Ellison.
- As SBF’s trial continues, his legal team is actively exploring all available options to secure a favorable outcome for his defense and fate in the ongoing trial.
- Caroline Ellison’s sworn testimony on October 11th revealed how Alameda Research misappropriated FTX’s customer deposits.
Why This Matters
The revelations brought to light by former employee Aditya Baradwaj hold significant implications for the already precarious fate of Sam Bankman-Fried, raising questions about the level of damage the former CEO did.
SBF’s lawyers are at loggerheads with the DOJ over evidence presentation. Read more:
SBF’s Legal Team Counters DOJ on Anthropic Evidence
Read here for more details about Caroline Ellison’s testimony:
Ellison Testimony Reveals All: FTX Concealed $800M Loss
