Unchained
SBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion Hole
Oct 19, 2023
In a gripping courtroom scene, financial expert Peter Easton reveals how Alameda mismanaged FTX funds, leading to a stunning $9 billion hole. His analysis uncovers the shocking reality of customer funds being funneled into risky investments and personal expenses. As defense attorney David Lisner probes Easton's methods, the judge expresses frustration over the relevance of other witnesses' testimonies, questioning their contributions to the case. Tensions mount as the trial continues, highlighting the tumultuous saga of FTX.
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Quick takeaways
- FTX mismanaged customer funds by using them for investments, political donations, real estate purchases, and loan repayments.
- The co-mingling of funds between FTX and Alameda contradicts earlier claims that they were separate entities.
Deep dives
FTX Mismanagement of Customer Funds
The podcast episode discusses the testimony of Notre Dame accounting professor Peter Easton, hired by the US Justice Department to analyze FTX and Alameda balance sheets, who revealed that FTX mismanaged customer funds. Easton's analysis showed that FTX used customer assets for its own purposes, with investments, political donations, real estate purchases, and loan repayments all made using customer money. The amount owed to customers on FTX was significantly greater than what FTX actually held in its crypto wallets. The co-mingling of funds between FTX and Alameda was also highlighted, contradicting earlier claims that they were separate entities.
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