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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Misuse of Customer Funds
- Customer funds were used for various expenditures, including investments, donations, and real estate.
- These expenditures included investments in Modulo Capital, Anthropic, and real estate like the Orchid Penthouse.
Easton's Analysis
- Notre Dame accounting professor Peter Easton analyzed FTX and Alameda's balance sheets.
- His analysis showed FTX mismanaged customer funds, leading to a $9 billion gap.
Defense Challenges Easton
- SBF's attorney, David Lisner, challenged Easton's methods by questioning the accounting of the fiat@ftx internal account.
- Easton admitted to combining FTX and Alameda customer liabilities, impacting the analysis's total accuracy.