Insiders at Alameda Research only found out the trading firm was on the verge of implosion because of a confession from former CEO Caroline Ellison, not internal warning signs, a former engineer for the company shared during a“It pretty much seemed like business as usual, right up until the end. The days before the company collapsed, it just seemed like a few really busy days of trading,” Aditya Baradwaj, a former Alameda employee, said on CoinDesk TV.
Ultimately, those revelations resulted in the collapse of both Alameda and FTX along with criminal charges against Bankman-Fried. His trial on fraud and conspiracy charges kicked off Wednesday.Baradwaj also said that the internal security practices as well as checks and balances at the trading firm were quite poor, which resulted in a “fat finger” trade in 2021 that caused the price of bitcoin to temporarily dip by up to 87%.