The disgraced founder of FTX, Sam Bankman-Fried (SBF), has addressed questions about security breaches during his ongoing fraud trial following the collapse of FTX. SBF revealed that platforms like Telegram, Slack, and Signal were commonly used for communication at FTX.
SBF Acknowledges Privacy Breaches
In a series of posts on X, SBF admitted that FTX data had been exposed due to a security breach. He explained that while FTX was headquartered in Hong Kong, there were security concerns during that time. He also mentioned the possibility of former employees selling data to competitors. However, he clarified that there was never a direct breach to FTX’s core system, but rather third parties were hacked.
Judge Kaplan expressed uncertainty about whether or not he would send the jurors home for the weekend.
Continuing Accusations Haunt SBF in Fraud Trial
Throughout the fraud trial, several serious allegations have been made against SBF. Caroline Ellison, the former co-CEO of Alameda Research, testified that she was coerced by SBF into engaging in criminal activities. She claimed that SBF directed her to commit these crimes. Additionally, Ellison revealed that SBF’s intention was to prompt regulators to crack down on Binance. This led to frustration from Binance CEO Changpeng “CZ” Zhao, who publicly criticized SBF for lobbying against other industry players behind their backs.
Hot Take: The Ongoing Fallout from the FTX Collapse
The ongoing fraud trial against Sam Bankman-Fried continues to reveal shocking allegations and raise concerns about security breaches at FTX. With SBF acknowledging privacy breaches and former employees potentially selling data to competitors, it raises questions about the company’s practices and safeguards. The trial highlights the importance of maintaining strong security measures in the crypto industry and the potential consequences of unethical behavior. As the trial unfolds, it will be interesting to see how these allegations impact the reputation of FTX and its founder.
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