FTX Used Billions in Customer Funds to Buy Back Binance Stake

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Crypto Prices CoinDesk Market Index

Policy

Binance CEO Changpeng Zhao said in a 2022 post the company had received over $2.1 billion in binance usd (BUSD) stablecoins and FTX’s FTT tokens.

Oct 19, 2023 at 1:06 a.m. PDT

“Oh, yes,” Easton said when asked by the court whether FTX ever spent user deposits. The professor testified these user deposits were reinvested into businesses and real estate, used to make political contributions and donated to charity, as reported.

These deposits were used to buy back Binance’s shares in FTX. “Over a billion dollars came from customer funds from FTX exchange,” Easton testified on Wednesday.

[Deed of property to SBF's parents is shown to jury]
AUSA Roos: Have you analyzed the spending out of the "Allow Negative" accounts?
Easton: Yes.
AUSA Roos: What about the Binance buy-back?
Easton: Over a billion dollars came from customer funds from FTX exchange
— Inner City Press (@innercitypress) October 18, 2023

In 2019, Binance invested an undisclosed amount of money in FTX as part of a strategic partnership between the two firms. The then-infant FTX processed $500 million daily in trades, a far cry from the over $50 billion at its peak.

Story continues below

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Relations between the two gradually soured over the years, even spilling over to social media.

Edited by Parikshit Mishra.

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FTX Used Billions in Customer Funds to Buy Back Binance Stake

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Binance CEO Changpeng Zhao said in a 2022 post the company had received over $2.1 billion in binance usd (BUSD) stablecoins and FTX’s FTT tokens.

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