$2BN of clients’ money is MISSING from collapsed crypto exchange FTX: Founder Sam Bankman-Fried denies secretly transferring $10BN to trading company run by his girlfriend


Sources said that the CEO showed spreadsheets revealing the missing funds from FTX, which along with Alameda declared bankruptcy on Friday

Bankman-Fried denied making the secret transfers to his crypto trading firm, which is run by his girlfriend, Caroline Ellison

He declined to comment about the missing funds and said his firm had ‘confusing internal labeling’

The SEC, which has been criticized for not acting sooner, is investigating FTX’s handling of customer funds, as well its crypto-lending activities

About $2billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter. Founder and CEO Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to the trading company Alameda Research, which is run by his girlfriend Caroline Ellison, Reuters reports. A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion. While it is known that FTX moved customer funds to Alameda, the missing funds are reported here for the first time. The financial hole was revealed in records that Bankman-Fried shared with other senior executives last Sunday, according to the two sources. The records provided an up-to-date account of the situation at the time, they said. Both sources held senior FTX positions until this week and said they were briefed on the company’s finances by top staff. Bahamas-based FTX filed for bankruptcy on Friday after a rush of customer withdrawals earlier this week. A rescue deal with rival exchange Binance fell through, precipitating crypto’s highest-profile collapse in recent years.

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