FTX faked its insurance fund amount using Python code: Wang Gary
The credibility of FTX’s “Backstop Fund” has been shattered, as revealed by the former chief technology officer of the cryptocurrency exchange. FTX, a prominent player in the crypto space, employed concealed Python code to distort the true value of its insurance fund. This fund, designed to safeguard users against substantial losses during significant liquidation events, was subject to manipulation, according to the testimony of Gary Wang, co-founder of FTX. In a startling revelation made on October 6th, Gary Wang, the former chief technology officer of FTX , asserted that the purported $100 million insurance fund in 2021 was nothing more than a fabrication. Furthermore, it was devoid of the FTX tokens (FTT) that it had claimed to hold. Instead of an authentic valuation, the figure presented to the public was derived from the daily trading volume of the FTX Token, multiplied by a seemingly arbitrary number close to 7,500. When confronted with this revelation by th...