realcryptomedia.com Welcome to reading ftx used Python code to fake. Gray Wang, is a co-founder of the FTX crypto exchange and also former chief technology officer of FTX. He claims that FTX used Python code to inflate the value of their insurance fund. Insurance funds are the money that protects the user’s privacy during significant liquidation events.
Remember, Gray Wang is the co-founder and chief technology officer of FTX. He made a solid statement on October 6, against FTX insurance funds in 2021. He claim that FTX used a Python code falsely and did not pay $100 million in insurance funds. In this article, we will discuss all the ways behind FTX used Python code to fake in detail. So, remain connected to this regard at the end.
What is FTX?
FTX was one of the best and largest digital cryptocurrency exchanges that works smoothly and is very popular in crypto users. It is used to buy and sell different cryptocurrencies secretly.
Furthermore, When crypto users invest in any term of the cryptocurrency coin. They use this platform because they provide a scour of digital wallets to store cryptocurrency in their personal accounts. Remember, Crypto customers can use their wallets to store cryptocurrencies by using some specific software and hardware. So, this is not part of the FTX crypto exchange platform.
However, this platform is popular due to its simple interface and security. Some other platforms also present that offer crypto users to buy and sell cryptocurrencies according to their rules and regulations.
What does it mean that FTX Used Python to Generate Fake Insurance Fund Amounts?
Gray Wang is a popular celebrity in the crypto field, he is co-founder and chief technology officer of the FTX cryptocurrencies exchanges platform. On 6 October, he claimed in court that FTX used a fake Python code and did not pay insurance funds in 2021. Insurance funds are the pool of money that protects the user’s losses during significant liquidation events. So, according to Gray Wang’s statement, FRTX authorities used Python code and make a lie to pay $100 million in insurance funds.
However, according to the FTX authorities, they pay $100 million in Funds for tokens but in reality, there are no tokens stored in them.
Furthermore, the insurance funds’ value was listed on the official website. They also list on social media platforms to get the attention of the users in the face of significant market fluctuations. So, after the investigation, the real value of the funds does not match with the real data that is present on this platform. So, the founded funds were insufficient to cover the user’s losses.
A trader opened an unnecessarily large stake with MobileCoin in 2021. They making use of a flaw in FTX’s leverage mechanism, which cost the exchange hundreds of millions of dollars. When Sam Bankman-Fried saw that the insurance money was almost empty.
The prosecution claims that there was an attempt to conceal the losses because FTX’s accounting records were less secret than Alameda Research’s.
Wang disclosed the insurance fund’s fraudulent nature and added that Nishad Singh. He is the former Chief Technical Officer of FTX. SBF (Sam Bankman-Fried) asked him to add the ‘allow_negative’ feature to the FTX source code (which used Python code to fake) so Alameda Research could trade on the exchange with nearly limitless liquidity.
Final Remarks:
ftx used python code to fake: According to Gary Wang, FTX created fictitious insurance fund figures using Python programming. He further stated in his statement that the purpose of this money was to shield consumers from losses. The displayed numbers are arbitrary. They come from multiplying 7,500 by the daily volume and then dividing the result by one billion.
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