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Alameda Research Lost 190 Million Dollars to Hackers!

Alameda Research

Alameda Research former employee claims that at one point they lost 100 million dollars after a trader clicked on a phishing link.

This incident isn’t the sole occurrence where the company, with Sam Bankman-Fried as a founding partner, experienced deception and suffered losses in the millions of dollars.

In a statement by Alameda Research’s software engineer at X, Bankman-Fried “believed that the most important thing for a startup like Alameda was to be able to move very, very quickly, so much so that he decided to ignore engineering and accounting practices that are standard in technology companies and financial companies.”

The former Alameda software engineer recently shared what was going on in the company on various social media accounts. The latest details came after former Alameda Research CEO Caroline Ellison stated in New York Court that Bankman-Fried ordered her to commit a crime.

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SBF’s Fast Pace

Baradwaj added that keeping up with SBF’s fast pace meant “almost never conducting code tests and lacking balance accounting.”

“Security checks for trading would only be added when needed, blockchain private keys and change API keys were stored as plain text in a file accessible by a few employees.”

Baradwaj’s estimate is that the company lost at least 190 million dollars.

In the first example, Baradwaj said a trader “fell victim to phishing by accidentally clicking on a fake link while trying to complete a DeFi transaction” which resulted in a 100 million dollar loss. He also said in another incident, a yield farm creator held funds hostage with the aim of defrauding Alameda, costing them 40 million dollars.

Lastly, Baradwaj said that following the leak of an old version of Alameda’s “plaintext keys file”, an attacker was “able to transfer funds from some exchanges and place bad orders”, resulting in a loss of 50 million dollars.

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