Expert Witness Reveals Investments and Loans Made from FTX Customer Funds
On the 11th day of FTX founder Bankman-Fried’s trial, an expert witness testified about investments and loans made from FTX’s customer funds. Professor Peter Easton, employed by Brattle, analyzed the accounts of FTX and Alameda Research.
Professor Peter D. Easton’s Testimony
- A balance sheet showed funds going from FTX to Alameda.
- The balance sheet revealed that 47 Alameda accounts received money from FTX customer accounts.
- Bankman-Fried made several investments using FTX customer funds, including investments to Anthony Scaramucci’s Skybridge Capital and $100 million in Dave Inc. from an Alameda venture.
- $1 million from customer funds was used by Nishad Singh to make donations to the political committee MTG (Mind The Gap).
- Singh received $96 million for property expenses and investments.
- FTX used over $1 billion of customer funds to buy back shares from Binance.
- FTX lent funds to Celsius, Maple, Abra, Anchorage, Bitgo, and TrueFi using customer funds.
Testimony of Chanel Medrano
- NBA legend Shaquille O’Neal bought out Binance’s stake in FTX.
- Bankman-Fried expressed his intention to stop lobbying during a conversation with a finance reporter at Business Insider.
A text message was presented where Bankman-Fried criticized regulators. The prosecutor also called Cory Gaddis as a witness to confirm Bankman-Fried’s multiple email accounts associated with different domains.
Hot Take: Revelations of Misuse of Customer Funds in FTX Trial
In the ongoing trial of FTX founder Bankman-Fried, expert witness testimony has shed light on the misuse of customer funds. Investments and loans made from FTX’s customer accounts were revealed, including investments to prominent firms and political contributions. This raises concerns about the transparency and responsible handling of customer funds by FTX. Additionally, evidence showed that Bankman-Fried expressed negative sentiments towards regulators. These revelations may have significant implications for the outcome of the trial and could impact FTX’s reputation in the crypto community. It remains to be seen how these allegations will be addressed and whether they will result in any legal consequences for Bankman-Fried and FTX.
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