How $8 Billion fraud was hidden in the source code | FTX

Hi everyone. Apologies about the incorrect pronouncing of “Fried”. Hopefully SBF doesn’t mind. Thanks for watching!

This is why you need to write your fraud code in x86 assembly.

I lost a job because the SVP asked me to make backend changes (direct edits) to a database and I refused. There was only one witness, and HE was the one who had the idea. There was also only one person internally with the knowledge, skill and privilege level to make the change (and only one or two people on the vendor's team, and the chances of anyone ever noticing were miniscule). Best thing that ever happened to me though; my next job was a big career improvement. If someone asks you to code something you KNOW is (or should be ) illegal, it's time to move on.

And don't forget, many people on Wall St thought SBF was a genius. They're still there, and making millions.

"If you are commiting fraud, maybe don't name your variables based on the illegal acts you're doing" We have to draw a line here. They may break the law, but break good code practices? That's too much, ma'am. 🤭

I once worked as a lead developer on a DoD ballistic missile defense program back in the late eighties. Much of the code used FORTRAN, with a sprinkling of a newly invented language called "C" that nobody heard of (and called it a fad). Despite "C" code already looking incomprehensible at that time, and FORTRAN being naturally ridiculous, the USAF Program Office wanted to obfuscate the code (different from encryption) because they were worried about security. We were working on rocket science level code, and trying to make it comprehensible was not on the priority list. The project was cancelled after the election.

'If you want to commit fraud, don't use Python.' Assembly FTW!

He may be fried but I think it's pronounced freed.

Seriously Great explanation, and next week Crowdstrike...😂😂😂

So wait... not only did they blatantly hardcode the fraud, but they hosted that code on Github?

See, only fraudsters need backends.

This happens when you are in charge of a lot of money, but are stoned out of your mind to even figure out what is going on.

As a coder it's unnerving to see nested IF blocks instead of higher quality AND expressions. But low quality code is unfortunately par for the course at billion dollar companies.

Really great description and summary of what should have been a much more complex problem to solve, as you say obfuscation was not high on their agenda...almost unbelievable!

That was a great job. I am an old retired lawyer and I could not have explained better

you are so awesome, Dee. Dunno, how exactly I found your channel, but the content and your narrative are really great.

Thanks for this overview, this was a train wreck. Perversely entertaining for me ( I recently retired from decades of database coding and administration) but not for the people who lost so much money. Fortunately the company I worked for (30 years) was very strict about legal issues, we had regular mandatory training sessions on law and ethics, and were encouraged to submit an anonymous tip if we felt something was wrong.

I think pronounces it "Freed" but he certainly is fried now, so please carry on

This is so crazy! Does not companies in US have controls done from outside, in Europe we have leagal reviews by external booking firms that go through the books and accounts! ??? How can this happen, like a bunch of guys playing a game.

SBF was a pseudonym for Sandwich, bacon, fried.