Main navigation

FTX Founder Secretly Moved Funds Through Backdoor: FTX Insider

Mon, 14/11/2022 - 12:43
FTX Founder Secretly Moved Funds Through Backdoor: FTX Insider
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Founder of IBC Group Mario Nawfal has taken to Twitter to claim that Sam Bankman-Fried had conducted a massive funds withdrawal via a backdoor that was built deliberately on his order.

Did SBF secretly move FTX funds to Alameda Research?

Mario Nawfal has referred to an anonymous insider at the bankrupt FTX exchange, who shared that Bankman-Fried had withdrawn funds from FTX wallet to Alameda Reseatch and some other entities.

To do that, SBF used a backdoor that was created on his instruction by the CTO of the exchange, Gary Wang.

Apparently, Nawfal was talking about the hack that was announced by FTX on Friday when more than $400 million worth of digital currencies were shifted from the wallets of the exchange.

CoinDesk stated that the amount of funds drained from FTX wallets exceeded $600 million in crypto.

Here's who insider was

The insider in question is Yung Dot, former senior engineer at FTX. In a long thread, he spoke about what Mario Nawfal put into one tweet.

Dot confirmed that he privately shared the information with Nawfal. He stated that the recent hack was possible due to a backdoor, which was made about nine months ago on instructions on Sam Bankman-Fried.

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

The sum of crypto that was moved through this backdoor, according to him, equals $783 million.

Ripple v. SEC: Fund Flows into XRP Signal Change in Investors' Mood

All eyes on after FTX

After the FTX scandal, head of Binance CZ called on all exchanges to share their proof of reserves.

After that, the CEO of exchange Kris Marszalek admitted to a mistake made about three weeks prior to that as an astonishing amount of Ethereum worth about $400 million was "mistakenly" sent to the wrong address.

According to Marszalet, intended to move Ethereum to one of its cold wallets but instead shifted the 320,000 ETH to a corporate wallet of exchange, as covered by The Verge.

The funds were then successfully returned to However, a previous similar case of this exchange did not end that easily. In August, a similar mistake took place, when the platform sent $7.2 million in crypto to a user who was supposed to receive a refund of $69. Now, the exchange is suing this person to get the money back.

After urging exchanges to provide proof of reserves, CZ of Binance warned the community in a tweet that if an exchange has to move large amounts of crypto prior to or after providing the aforementioned proof, it is a clear sign of problems.

A former employee of has told Mario Nawfal that such a large amount as $400 million in crypto could not have been moved "by mistake" as it would require "manual approval and various checks."


Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles