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FTX used more than $1 billion in customer funds to buy back shares from Binance

According to the US Department of Justice (DOJ), they have hired accounting professor Peter Easton from the University of Notre Dame to track billions of dollars in funds between Alameda and FTX. During the SBF trial hearing, the professor testified that FTX used customer funds to repurchase all of its shares held by Binance in 2022, with over $1 billion coming from FTX's customer funds. Easton testified that user deposits were also reinvested in businesses and real estate, used for political donations, and donated to charitable organizations. Previously, in 2019, as part of a strategic partnership between the two companies, Binance invested an undisclosed amount of funds in FTX. Binance CEO CZ stated in an article in 2022 that the company had received over $2.1 billion in BUSD and FTX's FTT tokens as part of the buyback. (CoinDesk) Earlier reports stated that in 2021, SBF repurchased FTX shares held by CZ for $2.275 billion in response to regulatory scrutiny.

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