Scandal Unveiled: Accounting Professor’s Testimony Reveals Shocking Misuse of Customer Funds in FTX Trial

In a startling turn of events at the trial of former FTX CEO, Sam Bankman-Fried, renowned accounting professor Peter Easton from the University of Notre Dame took the stand on Wednesday, delivering a damning testimony. Easton affirmed that Bankman-Fried had been siphoning off customer funds over an extended period.

The professor substantiated his claims by presenting instances where Bankman-Fried, currently facing charges of fraud, diverted customer assets for various purposes, including venture investments, political contributions, and a colossal $2.2 billion buyback of FTX equity from Changpeng Zhao, CEO of rival crypto exchange Binance. Shockingly, Easton revealed that $1.2 billion of the buyback sum, denominated in the cryptocurrencies BUSD, BNB, and FTT, was sourced directly from FTX customers.

Despite this revelation, representatives for Binance have yet to issue a statement regarding Easton’s testimony and whether Zhao will be required to reimburse the funds. A spokesperson for the FTX estate opted not to comment on the matter.

Previously, the Binance CEO dismissed concerns about the origin of the funds, stating, “I think we’ll leave that to the lawyers. I think our legal team is perfectly capable of handling it.” Now, with a government witness explicitly affirming that over half of the funds Zhao received from Bankman-Fried were sourced from customers, the question arises: What, if any, alterations will be made to Binance’s legal obligations in light of this revelation? The crypto community eagerly awaits further developments in this unfolding saga.

Source: Fortune

Related Posts

Leave a Reply


Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

NCC and FintechNGR Renew Commitment to Deepen Nigeria’s Fintech Sector
July 18, 2024By
Pixelverse Announces Launch of PIXFI Token on TON
July 16, 2024By
South Korea’s Right-Wing Party Proposes Three-Year Delay in Crypto Gains Tax
July 16, 2024By


Video Posts

Crypto Stats

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin64,127 0.12 % 0.60 % 12.57 %
Ethereum3,419.8 0.16 % 0.18 % 10.94 %
Tether0.9998 0.00 % 0.04 % 0.07 %
BNB571.27 0.10 % 0.03 % 9.63 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %

Please enter CoinGecko Free Api Key to get this plugin works.