Alameda Lost $190 Million to Hacks: Former Engineer

Aditya Baradwaj, a former engineer at investment company Alameda Research, shared stories about several big money hacks at the firm. This comes while FTX founder, Sam Bankman-Fried, is in a fraud trial.

Baradwaj talked about three hacks which cost Alameda a big total of $190 million. He shared this in posts on X (once called Twitter). He says:

“These are only a few of the problems – there might be even more, some from before I worked there.”

The biggest problem was a loss of over $100 million. An Alameda trader was tricked by a fake website link while trying to make a DeFi deal. The bad link was at the top of Google Search results.

Another time, they lost $50 million. Baradwaj claims that a past worker leaked secret keys:

“The hacker stole  money from some exchanges and made bad trades.”

They also lost $40 million when they tried yield farming on a new blockchain, and the creator took their funds.

Despite losing lots of money, Baradwaj says Bankman-Fried did not try to make things safer.

“Even after all these problems, no serious steps were taken to change how we worked.”

Before, on August 23, Baradwaj said on social media that Bankman-Fried took his “whole life savings” with the now-closed crypto exchange FTX.

Even with his worries and strange things he saw while working there, his work at FTX helped him live a fancy life traveling, meeting celebrities, and politicians.

He called it “careless risk-taking for a company with billions of dollars.”

Recently, a report said Alameda Research might have made $39.5 billion in USDT (Tether) before going bankrupt. This number came from Conor Grogan at Coinbase.