• A recent court filing revealed a $65 billion artificial credit line between Alameda and FTX.
• The filing included a deck detailing the current findings relative to FTX group funds, including an illustration of the FTX liquidation process and a code sample for the Alameda backdoor.
• The deck also confirmed the existence of a ‚god mode‘ by which a small group of individuals were able to move funds off the exchange.

The recent court filing in the FTX bankruptcy case has uncovered a startling revelation – a $65 billion artificial credit line between Alameda and FTX. The filing included a deck that detailed the current findings relative to FTX group funds, including an illustration of the FTX liquidation process and a code sample for the Alameda backdoor. This code sample allows for uncollateralized borrowing without any record, which is why authorities are calling it a “backdoor”.

The filing also confirmed the existence of a “god mode” by which a select group of individuals were able to move funds off the exchange. This was done by setting up a specific “account setting code” in the exchange’s codebase. Seven million standard customers’ access codes were set so that they could not borrow if their balances were zero. Market makers for the company, on the other hand, had credit limits of up to $150 million.

But the biggest shock to come out of this filing was the revelation that Alameda was exempt from auto-liquidation and was not required to post any real collateral for trades. This means that Alameda was able to trade using an artificial capital line that was 43,000% larger than the FTX market makers.

This has caused much outrage among the public, as it is seen as a massive case of fraud. According to the filing, this act alone would be one of the most significant examples of fraud in history. It is currently unclear what the outcome of this case will be, as the investigation is ongoing. However, it is certain that FTX will face some serious repercussions for their actions.