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SBF trial witness: FTX accounting software glitch overstated Alameda's $8 billion debt

A witness in the SBF trial stated that an unusual way in which FTX handles customer deposits led to a software error that exaggerated the amount Alameda owes the trading platform's customers by $8 billion. One key aspect is the banking industry, former FTX developer Adam Yedidia told the court that in FTX's early days, its customers transferred money to Alameda instead of directly depositing fiat currency into FTX. This unusual relationship made it difficult for the company to track customer debt. Yedidia said that there was an error in the accounting software, which showed that Alameda owed far more money than the actual amount by June 2022.

FTX
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