The post Aditya Baradwaj Exposes $190M Security Flaws at Alameda Research appeared first on Coinpedia Fintech News

In 2017, Sam Bankman-Fried co-founded Alameda Research, the cornerstone of his cryptocurrency ventures. The relationship between Alameda and his exchange FTX is now under investigation, as their interdependence led to substantial losses for customers and traders when crypto prices declined last year.

Now the question arises: how can you trust your Bitcoin with FTX, Almeda, Celsius, etc? But before that, let’s read the insider information on the grave security breach inside Almeda and what it reveals on SBF’s intention with the sister firm run by her former Girlfriend.  

Insider Exposes $190 Million Fraud in the Name of Security Breaches

Former Alameda Research software engineer Aditya Baradwaj has recently revealed shocking revelations about significant security breaches that allegedly cost the trading firm a staggering $190 million. His accounts of these incidents shed light on potential vulnerabilities and operational risks within the company, raising concerns about its practices.

In the first incident, Baradwaj claimed that a trader fell victim to a phishing attack, losing $100 million after mistakenly clicking on a deceptive link while attempting to complete a DeFi transaction. This security lapse highlights the importance of robust cybersecurity measures, especially in the high-stakes world of cryptocurrency trading.

Another alarming situation occurred when the creator of a yield farm held funds hostage in a scam that cost Alameda $40 million. This case underscores the risks associated with the DeFi space, which can be prone to fraudulent activities and scams.

The third security breach was attributed to leaking an older version of Alameda’s “plaintext keys file.” This breach allowed an attacker to transfer funds from some exchanges and execute malicious orders, resulting in a loss of $50 million. It highlights the critical need for secure storage and management of sensitive data in the crypto industry.

SBF’s Connection is a Mandate

On a controversial note, Baradwaj claims that Sam Bankman-Fried prioritized speed over security and compliance, which led to inadequate code testing and incomplete balance accounting. It may prove costly for SBF’s lawyer to brush off. The rapid pace set by Bankman-Fried may have compromised essential safety checks and security protocols.

The total loss of $190 million due to these incidents is a significant blow to Alameda Research, raising questions about its risk management and cybersecurity practices. These revelations serve as a reminder of the importance of robust security measures and rigorous due diligence in the cryptocurrency industry, where the threat of cyberattacks and fraudulent activities remains a constant concern.

Caroline’s testimony proves fraud claims were intentional

Caroline Ellison’s court testimony unveils a $10 billion borrowing from FTX customers, a bribery scheme, and financial mismanagement by SBF. She discloses Sam’s investment choices led to financial strain and his pursuit of funding from the Saudi Prince while plotting against Binance. The mention of the bribery scheme was contested and subsequently removed from the record.

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Filed under: Bitcoin - @ October 12, 2023 2:57 am