$1 Billion In Client Funds Has Gone Missing From The FTX Disaster

As reported, at least $1 billion in customer funds have vanished from the defunct cryptocurrency exchange FTX.

According to Reuters, the exchange’s founder, Sam Bankman-Fried, secretly transferred $10 billion in customer funds from FTX to Bankman-trading Fried’s company Alameda Research.

According to them, a significant portion of that total has since vanished. According to one source, the missing sum is around $1.7 billion. According to the other, the difference is between $1 billion and $2 billion.

While it is common knowledge that FTX transferred customer funds to Alameda, the missing funds are being reported for the first time here.

The financial gap was revealed in records that Bankman-Fried shared with other senior executives last Sunday. They claimed that the records provided an accurate account of the situation at the time. Both sources held senior FTX positions until this week, and they said top management briefed them on the company’s finances.

More information about the FTX bankruptcy and missing funds becomes available. Sam Bankman-abrupt Fried’s transformation from white knight to washed-up

After a rush of customer withdrawals earlier this week, Bahamas-based FTX filed for bankruptcy on Friday. A rescue deal with rival exchange Binance fell through, resulting in the most high-profile crypto crash in recent years.

Bankman-Fried stated that he “disagreed with the characterization” of the $10 billion transfer. “We didn’t transfer secretly,” he explained. “We had confusing internal labeling and misread it,” he explained without going into further detail.

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