FTX used billions in customer funds for Binance stake buyback
The post FTX used billions in customer funds for Binance stake buyback appeared on BitcoinEthereumNews.com. FTX is accused of using customer deposits to repurchase Binance stake. An accounting professor hired by the US Department of Justice reveals over a billion dollars came from customer funds for the share buyback. FTX’s proposed recovery plan offers hope, aiming for a 90% asset return to customers affected by the exchange’s bankruptcy. In a shocking revelation, the ongoing legal proceedings surrounding the defunct cryptocurrency exchange FTX have unveiled that the exchange allegedly used customer funds to buy back its stake held by Binance. This development has raised serious concerns about the handling of customer deposits within the crypto industry. Customer funds diverted for Binance share repurchase During a court hearing, it was disclosed that FTX, a crypto exchange that filed for bankruptcy in November 2022, employed customer deposits to repurchase its shares from competitor Binance. Binance CEO Changpeng Zhao in November 2022 acknowledged that his company had received over $2.1 billion in Binance USD (BUSD) stablecoins and FTX’s FTT tokens as part of this transaction. As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4 — CZ
The post FTX used billions in customer funds for Binance stake buyback appeared on BitcoinEthereumNews.com.
FTX is accused of using customer deposits to repurchase Binance stake. An accounting professor hired by the US Department of Justice reveals over a billion dollars came from customer funds for the share buyback. FTX’s proposed recovery plan offers hope, aiming for a 90% asset return to customers affected by the exchange’s bankruptcy. In a shocking revelation, the ongoing legal proceedings surrounding the defunct cryptocurrency exchange FTX have unveiled that the exchange allegedly used customer funds to buy back its stake held by Binance. This development has raised serious concerns about the handling of customer deposits within the crypto industry. Customer funds diverted for Binance share repurchase During a court hearing, it was disclosed that FTX, a crypto exchange that filed for bankruptcy in November 2022, employed customer deposits to repurchase its shares from competitor Binance. Binance CEO Changpeng Zhao in November 2022 acknowledged that his company had received over $2.1 billion in Binance USD (BUSD) stablecoins and FTX’s FTT tokens as part of this transaction. As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4 — CZ
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