According to testimony from Gary Wang, co-founder, FTX, a crypto exchange, used hidden Python code to misrepresent the value of its insurance fund a pool of funds meant to prevent user losses during huge liquidation events, stated Cointelegraph.
Sources revealed on October 6, 2023, Gary Wang, FTX’s former chief technology officer, mentioned that FTX’s so-called $100 million insurance fund in 2021 was fake and never contained any of the exchanges’ FTX tokens (FTT), Cointelegraph added.
It is believed the figure shown to the public was calculated by multiplying the daily trading volume of the FTX Token by a random number close to 7,500.
“For one, there is no FTT in the insurance fund. It’s just the USD number. And, two, the number listed here does not match what was in the database,” Wang told Cointelegraph.
(With insights from Cointelegraph)
