The missing $9 billion from FTX was the focus at Sam Bankman-Fried’s ongoing trial. An accounting professor from the University of Notre Dame, Peter Easton, was called upon to shed some light on the mystery. Easton’s accounting skills had quite a task, with the enormity of the missing funds raising eyebrows and posing questions about the financial viability of the firm.
In his testimony, Easton stated that back in June 2022, there were supposed to be $11.3 billion in customer funds held at Alameda Research. However, an audit revealed that only $2.3 billion were actually in its bank accounts. This discrepancy implied a missing sum of nearly $9 billion, a revelation that undoubtedly startled FTX’s customers and shareholders alike.
Easton went on to explain that the funds had been utilized for various purposes. A substantial amount was invested in SkyBridge Capital, a fund set up by Anthony Scaramucci, and Modulo Capital, organized by Lily Zhang. It appears that the investments didn’t quite yield the expected returns, contributing to the aforementioned financial discrepancies.
It is questionable whether these spent funds were factored into FTX’s bankruptcy filing or if they were conveniently overlooked. Irrespective, the legal implications are considerable. It is not only a question of corporate responsibility, but also potentially a breach of the fiduciary duty owed to FTX’s customers.
For more details, refer to the original report by Bloomberg, The Mystery of FTX’s Missing $9 Billion Unraveled at SBF Trial.