
Some of FTX's employees in the U.S. knew about the backdoor in the exchange that allowed Alameda Research to withdraw billions of customer funds, according to a Wall Street Journal report.
The employees flagged their findings to FTX's director of engineering, Nishad Singh, but the problem never got fixed, the WSJ reported.
The team, who were working for LedgerX, the crypto derivatives exchange acquired in 2021, was examining whether the code for FTX's main exchange could be used in the US.
LedgerX's chief risk officer, Julie Schoening, raised the concerns to her boss Zach Dexter, who went on to discuss it with Nishad Singh, one of the close confidants of FTX founder Sam Bankman-Fried.
In August 2022, she was fired by her bosses, amid suggestions she had irritated her bosses over highlighting the problems.
Miami International Holdings, the new owners of LedgerX, said it was not immediately available for comment.
The news emerges at the start of Bankman-Fried's trial in New York, where he faces charges of wire fraud. He has pleaded not guilty to all charges. Singh is expected to testify against his former boss.