FTX Insider: FTX founder was secretly moving funds through backdoor

According to an FTX insider, the recent FTX “hack” was an illegal withdrawal of funds from FTX to Alameda Research.

Mario Nawfal, the founder of IBC Group, took to Twitter to claim that Sam Bankman-Fried conducted a massive fund withdrawal through a backdoor built on his orders.

Did SBF transfer FTX funds to Alameda Research in secret? According to Mario Nawfal, an anonymous insider at the bankrupt FTX exchange revealed that SBF transferred funds from the FTX wallet to Alameda Reseatch and other entities. To accomplish this, SBF used a backdoor created at his request by the exchange’s CTO, Gary Wang.

Apparently, Nawfal was referring to the FTX hack, which occurred on Friday and resulted in the theft of more than $400 million in digital currencies from the exchange’s wallets. According to CoinDesk, the amount of crypto funds drained from FTX wallets exceeded $600 million.

Yung Dot, a former senior engineer at FTX, is the insider in question. In a lengthy thread, he discussed what Mario Nawfal said in a single tweet. Dot confirmed that he had shared the information with Nawfal privately.

He claimed that the recent hack was made possible by a backdoor created about nine months ago on Sam Bankman-Fried’s instructions.

“The entire hack was possible due to the elx trapdoor SBF put in ~ 9 months ago.”

According to him, the total amount of cryptocurrency moved through this backdoor is $783 million.