During Wednesday's SBF trial, Peter Easton, an accounting professor at the University of Notre Dame, testified as a prosecution witness. He said after analyzing transactions between FTX, Alameda Research, and other third parties, he believed FTX customers' funds were misused, including investing in companies, purchasing real estate, repaying loans, and making political donations.
Easton was hired by the Department of Justice to trace Alameda and FTX funds. When asked whether FTX customers' deposits were spent, he answered, "Oh yes." According to his analysis, the customers' funds had already been used in March 2021. By June 2022, FTX held only around $2 billion, while the customers' deposits were more than $11 billion.
Easton said that all of Alameda's $400 million investment into Modulo Capital was made using customer funds. The investments in SkyBridge Capital, Genesis, Dave, K5 Global, and Robinhood were at least in part using customer deposits. When buying FTX's stake back from Binance, Alameda used over $1 billion from FTX users. In addition, the money SBF used to buy real estate in the Bahamas and to make political donations, and the money Alameda used to repay loans, were from the customer deposits as well.
To learn more, please read: the Trial of SBF
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