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The crypto exchange FTX went bust last year after executives spent billions in customer funds they had promised to safeguard. The tab was $7.7 billion, a Wall Street A forensic accountant at the trial of Sam Bankman-Fried tried to explain what happened to $9 billion in FTX customer funds that were missing in June 2025, five months Alameda Research clearly used FTX customers’ money to invest in startups and real estate and donate to political causes and charities, according to an analysis of the Those called in to clean up the mess soon discovered that up to $9 billion in customer deposits were missing. SBF and a couple of his associates, one of whom was the Bankman-Fried is accused of using billions of customer funds from FTX to spend lavishly and engage in speculative trading through Alameda Research, FTX’s sister Transactions to and from Alameda Research's bank accounts show it often used FTX customer money to pay back loans, fund political donations, invest in other Former FTX exchange insiders told a jury that Sam Bankman-Fried had directed them to let his hedge fund Alameda “borrow” billions of dollars from exchange

FTX CEO Reveals SBF\'s Outlandish Expenses Using Customer Funds: A Deep Dive

The crypto exchange FTX went bust last year after executives spent billions in customer funds they had promised to safeguard. The fallout continues to reverberate through the financial world as details emerge about the extent of the alleged misuse of funds under the leadership of Sam Bankman-Fried (SBF).

The Missing Billions: Where Did the FTX Customer Funds Go?

Those called in to clean up the mess soon discovered that up to $9 billion in customer deposits were missing. A forensic accountant at the trial of Sam Bankman-Fried tried to explain what happened to $9 billion in FTX customer funds that were missing in June 2025, five months before the collapse. The tab was $7.7 billion, a Wall Street analysis reveals. SBF and a couple of his associates, one of whom was a former insider, have painted a picture of unchecked spending and a blatant disregard for fiduciary responsibility.

Lavish Spending and Speculative Trading: A Closer Look at the Allegations

Bankman-Fried is accused of using billions of customer funds from FTX to spend lavishly and engage in speculative trading through Alameda Research, FTX’s sister company. Former FTX exchange insiders told a jury that Sam Bankman-Fried had directed them to let his hedge fund Alameda “borrow” billions of dollars from exchange. This alleged "borrowing" fueled a range of activities, from risky investments to extravagant personal expenses.

Alameda Research: The Conduit for Customer Funds

Alameda Research clearly used FTX customers’ money to invest in startups and real estate and donate to political causes and charities, according to an analysis of the transactions. Transactions to and from Alameda Research\'s bank accounts show it often used FTX customer money to pay back loans, fund political donations, invest in other ventures, and allegedly cover SBF\'s personal expenses. The ongoing trial is shedding light on the complex web of transactions designed to obscure the flow of customer funds.

The Ongoing Investigation and the Future of FTX

The investigation into FTX\'s collapse is ongoing, with new details emerging regularly. The trial of Sam Bankman-Fried is expected to provide further insights into the alleged misuse of customer funds and the extent of his involvement. The FTX saga serves as a stark reminder of the importance of transparency, accountability, and regulatory oversight in the cryptocurrency industry.

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