Former Co-CEO of Alameda Research: FTX.com's Cash Deficit Exceeds $10 Billion by March 2022

From the inception of the FTX.com exchange, FTX has been mixing customer deposits with company funds and wantonly misusing them, according to new court documents. By August 2022, Bankman-Fried, Wang, Singh, and Ellison privately estimate that the FTX.com exchange owes customers more than $8 billion in fiat currency that it cannot repay. To cover up the shortfall, SBF et al. created a fake customer account on FTX.com, which they called "our Korean friend's account." While media attention focused on SBF’s August 2022 estimate of $8.9 billion in cash liabilities reflected in the “Korean Friend” fake account, estimates by SBF et al. were even higher. For example, in March 2022, former Alameda Research co-CEO Caroline Ellison estimated in a private note that FTX.com alone had a cash deficit of more than $10 billion.