FTX Customer Funds Unravels the missing of $9 billion

Key Points:

• The FTX customer funds were utilized for various purposes, including investments with Anthony Scaramucci’s SkyBridge Capital and Lily Zhang’s Modulo Capital.
• Peter Easton’s testimony revealed that Sam Bankman-Fried diverted funds from his FTX cryptocurrency exchange into Alameda Research, leading to the downfall of both companies.
• The diversion of funds and subsequent activities resulted in the eventual downfall of FTX and Alameda, with Bankman-Fried now facing charges of fraud and conspiracy.

In Sam Bankman-Fried’s trial, a forensic accountant investigated the disappearance of $9 billion in FTX customer funds in June 2022, prior to the company’s bankruptcy.

Accounting Professor Unravels Mystery of Missing FTX Customer Funds

Peter Easton, an esteemed accounting professor at the University of Notre Dame, disclosed that only $2.3 billion out of the intended $11.3 billion was found in Alameda Research’s bank accounts. Surprisingly, these funds were then utilized for various purposes, including investments with SkyBridge Capital and Modulo Capital.

According to Easton, these customer funds were employed for a wide range of activities, such as investments, political contributions, charitable foundations, and real estate acquisitions. He thoroughly examined Alameda’s bank statements, wire transfers, and government documents. This testimony supports the prosecution’s claim that Bankman-Fried redirected funds from FTX to Alameda for investments, political donations, and properties, leading to the downfall of both companies. As a result, Bankman-Fried is now facing charges of fraud and conspiracy.

FTX Customer Funds Funneled Into Modulo Capital, Used to Repay Loan, Accountant Testifies

A detailed analysis of the financial trail revealed that a significant portion of the customer funds was funneled into Modulo Capital through an investment facilitated by Alameda. Additionally, FTX customers’ crypto assets were used to repay a loan from Genesis Capital. Despite attempts by Bankman-Fried’s defense attorneys to discredit the witnesses, their accounts remained consistent.

In the ongoing trial of Sam Bankman-Fried, a forensic accountant aimed to clarify the mysterious disappearance of $9 billion in FTX customer funds that occurred in June 2022, five months prior to the company’s bankruptcy declaration.

Coincu will continue to update the situation related to Sam Bankman-Fried, you can find out more information through this article.

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