FTX Illegally Misappropriated Customer Assets to Purchase Equity

Bankrupt cryptocurrency exchange FTX has repurchased Binance’s stake in FTX with more than $1 billion in customer funds, it has been revealed.

According to CoindeskUS, Binance CEO Changpeng Zhao said last year that the company received more than $2.1 billion in Binance stablecoin (BUSD) and FTX’s FTT token as part of the buyback.

Peter Easton, an accounting professor at Notre Dame University, has been hired by the U.S. Department of Justice (DOJ) to track the billions of dollars in transactions between Alameda and FTX as part of the ongoing Bankman trial.

When asked by the court if FTX ever used user deposits, Easton said yes. “These user deposits were reinvested in businesses, real estate, political contributions, and charities,” Easton testified.

The deposits were used to buy Binance’s stake in FTX. “Over $1 billion came from FTX’s customer funds,” Easton said.

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