SBF Had Secret $65B ‘Backdoor’ Credit Line

WILMINGTON, DE – Court filings in the FTX lawsuit show a “backdoor” was created to funnel $65 billion of customer funds to be used as Alameda’s credit line.

FTX attorney Andrew Dietderich stated in the Delaware bankruptcy court that FTX founder Sam Bankman-Fried ordered his co-founder, Gary Wang, to “[create] this backdoor by inserting a single number into millions of lines of code for the exchange”. 

Alameda’s credit line was “artificial capital” used to trade on the open markets, according to Dietderich. The case docket shows an illustration of funds being transferred:

Source: FTX Case Docket

FTX had access to $65 billion of credit – $43,000% more than the largest FTX investors with credit limits capped at $150 million. Wang also programmed an “account setting code” where a handful of executives at FTX could move customer funds off the exchange to Alameda without being noticed.