Crypto News – Former Alameda Research engineer Aditya Baradwaj has described a number of hacks the investment company experienced during the Sam Bankman-Fried fraud trial. He lists three cyberattacks that cost an astounding $190 million in total.
Former Alameda Research Engineer Aditya Baradwaj Testifies on Hacks in Sam Bankman-Fried Trial
Baradwaj uncovered three distinct security issues in a series of posts on X, but he implied there might be many more.
These are just a few incidents – there’s many more, including from before my time at the company.
Baradwaj
One valued at more than $100 million was the largest occurrence that was disclosed. An Alameda trader clicked on a phony website link while attempting to complete a DeFi transaction, which led to them becoming the victim of a phishing scam. This link was moved to the top of the Google search results, according to Baradwaj.
$50 million worth of losses resulted from the second-largest occurrence. According to Baradwaj, an old copy of the unencrypted keys used by the investment firm may have been released by a former employee.
The attacker transferred funds out of some exchanges and placed bad orders.
Baradwaj
Lastly, yield farming on a new blockchain with dubious authenticity resulted in losses of $40 million. The creator ultimately held their money hostage, which resulted in protracted negotiations that lasted for several months.
Baradwaj Harshly Criticizes Bankman-Fried and FTX
In spite of significant fund losses, according to Baradwaj, Bankman-Fried took no steps to prevent such attacks.
Was the tradeoff worth it? Sam certainly seemed to think so. Even after all these incidents, no serious attempt was made to change the way we operated.
Baradwaj
Baradwaj has previously shared his experiences working at Alameda Research on social media. He claimed that Bankman-Fried had stolen his whole life savings through the management of the now-defunct cryptocurrency exchange FTX in a series of posts on August 23.
He also revealed that, despite his worries and the shady conduct he saw while working there, he lived a luxury lifestyle. This way of life included international travel, mingling with celebrities, and interacting with politicians. For a corporation managing billions of dollars in money, he summed it up as negligent risk management.
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