FTX used over $1 billion of customer deposits to repurchase shares from Binance

2023-10-19 16:42:20

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ChainCatcher news, according to CoinDesk, the U.S. Department of Justice (DOJ) has hired University of Notre Dame accounting professor Peter Easton to trace the billions of dollars between Alameda and FTX. The professor testified at the SBF trial hearing that FTX used customer funds in 2022 to buy back all shares the company held in rival exchange Binance, with over $1 billion coming from customer funds at the FTX exchange. The professor testified that user deposits were also reinvested into businesses and real estate, used for political donations, and donated to charities.

Previously, in 2019, as part of a strategic partnership between the two companies, Binance invested an undisclosed amount of money into FTX. Binance CEO Changpeng Zhao stated in an article in 2022 that as part of the buyback, the company had received over $2.1 billion in BUSD and FTX's FTT tokens.

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