The FTX Fraud Was in the Code

Molly White:

Code snippets shown to the jury demonstrated how Nishad Singh wrote some code that would update the insurance fund amount by adding to it the daily trading volume, multiplied by a randomish number around 7,500, and dividing it by a billion, thus making it appear as though the website was referencing a real account balance that was fluctuating as the exchange added funds or withdrew from it to cover losses. In reality, it was all made up.

It is so rare in computing controversies to see something so scandalous spelled out in such simple terms. You have got to appreciate FTX’s clean coding standards for making their fraudulent activity clear as day.