FTX Diverted Customer Funds to Buyback Stake from Rival Company Binance
The post FTX Diverted Customer Funds to Buyback Stake from Rival Company Binance appeared on BitcoinEthereumNews.com. It was disclosed that FTX customers’ money was spent on business investments, political and charity donations, and real estate. Beleaguered cryptocurrency exchange FTX spent customer’s deposits for business investments, political contributions, charitable donations, real estate, and the buyback of shares from competitor exchange Binance. During a hearing on Wednesday at the ongoing Sam Bankman-Fried (SBF) trial, professor Peter Easton, an accounting officer hired by the US Department of Justice (DOJ) to investigate the company’s financial records, revealed that the exchange spent billions of dollars repurchasing its stakes from Binance. CZ Confirms Binance Received Billions from FTX Last year, Binance CEO Changpeng Zhao (CZ) confirmed in a post on X (formerly Twitter) that the exchange received approximately $2.1 billion from the exchange in relation to its deal with FTX back in 2021. In November 2022, Binance liquidated its FTT position worth over $580 million after speculations that FTX could be solvent. The firm received the token back in 2019 after its partnership with the exchange. Recent revelations from Professor Easton confirmed that over a billion dollars at approximately $1.2 billion spent on the buyback program came from FTX’s customer funds. [Deed of property to SBF’s parents is shown to jury]AUSA Roos: Have you analyzed the spending out of the “Allow Negative” accounts?Easton: Yes.AUSA Roos: What about the Binance buy-back?Easton: Over a billion dollars came from customer funds from FTX exchange — Inner City Press (@innercitypress) October 18, 2023 Further scrutiny into the company’s bank accounts and crypto wallets involving BNB, BTC, ETH, LINK, LTC, MATIC, UST, USTP, and other cryptocurrencies showed that the exchange started borrowing money from customers’ deposits in January 2021. Easton also testified that the amount of customer funds held in Alameda and FTX is nowhere close to what the company currently owes customers. According to him, the…
The post FTX Diverted Customer Funds to Buyback Stake from Rival Company Binance appeared on BitcoinEthereumNews.com.
It was disclosed that FTX customers’ money was spent on business investments, political and charity donations, and real estate. Beleaguered cryptocurrency exchange FTX spent customer’s deposits for business investments, political contributions, charitable donations, real estate, and the buyback of shares from competitor exchange Binance. During a hearing on Wednesday at the ongoing Sam Bankman-Fried (SBF) trial, professor Peter Easton, an accounting officer hired by the US Department of Justice (DOJ) to investigate the company’s financial records, revealed that the exchange spent billions of dollars repurchasing its stakes from Binance. CZ Confirms Binance Received Billions from FTX Last year, Binance CEO Changpeng Zhao (CZ) confirmed in a post on X (formerly Twitter) that the exchange received approximately $2.1 billion from the exchange in relation to its deal with FTX back in 2021. In November 2022, Binance liquidated its FTT position worth over $580 million after speculations that FTX could be solvent. The firm received the token back in 2019 after its partnership with the exchange. Recent revelations from Professor Easton confirmed that over a billion dollars at approximately $1.2 billion spent on the buyback program came from FTX’s customer funds. [Deed of property to SBF’s parents is shown to jury]AUSA Roos: Have you analyzed the spending out of the “Allow Negative” accounts?Easton: Yes.AUSA Roos: What about the Binance buy-back?Easton: Over a billion dollars came from customer funds from FTX exchange — Inner City Press (@innercitypress) October 18, 2023 Further scrutiny into the company’s bank accounts and crypto wallets involving BNB, BTC, ETH, LINK, LTC, MATIC, UST, USTP, and other cryptocurrencies showed that the exchange started borrowing money from customers’ deposits in January 2021. Easton also testified that the amount of customer funds held in Alameda and FTX is nowhere close to what the company currently owes customers. According to him, the…
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