FTX and Sam Bankman-Fried

The crypto exchange secretly funneled billions in customer deposits to sister hedge fund Alameda Research, resulting in an $8 billion shortfall and criminal fraud convictions. Sam Bankman-Fried's misuse of $8 billion in customer funds was enabled by a secret exemption in FTX's code that allowed Alameda to carry a negative balance of up to $65 billion, a 225% gap between reported assets and actual holdings.