Exchange News- FTX had moved about $10 billion to Alameda Research.
- Bankman-Fried utilized a “backdoor” in FTX’s accounting system as per sources.
At least $1 billion in customer deposits have reportedly vanished from the defunct cryptocurrency exchange FTX, according to a report by the news agency Reuters.
Two former high-ranking FTX employees who talked with Reuters have revealed some interesting details about the company. The sources informed that FTX founder and ex-CEO Sam Bankman-Fried secretly transferred $10 billion of client assets to his trading business, Alameda Research.
Funds Mysteriously Disappeared
They estimated that a large portion of the money is now missing. Approximately $1.7 billion was lost, according to one source. Moreover, the other estimate put the shortfall at between $1 and $2 billion. It had previously been reported that FTX moved customer cash to Alameda. However, this is the first time the missing sums have been stated.
A substantial portion of the money, they said, had mysteriously disappeared. It is commonly known that FTX moved customer assets to Alameda, but the lost sums have never been discussed before.
Bankman-Fried, according to the sources, utilized a “backdoor” in FTX’s accounting system to take money away. The company’s financial records may have been altered by Bankman-Fried without his or her knowledge or that of the company’s external auditors, according to the allegations.
Bankman-Fried allegedly presented many spreadsheets to the company’s regulatory and legal team leaders that proved FTX had moved about $10 billion from FTX to Alameda, as stated by the two aforementioned ex-employees.
Furthermore, this data showed how much money FTX contributed to Alameda and for what purposes. The spreadsheets did not reveal where these funds were moved, and sources said they were unaware of what became of them.
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Source: https://thenewscrypto.com/over-1-billion-of-customer-funds-missing-from-ftx-records/