An expert witness in the SBF trial, a Notre Dame accounting professor, took the stand on Wednesday, presenting the results of a comprehensive analysis of thousands of pages of bank statements and internal FTX data. The results showed that as of June 2022, SBF spent $228 million of client funds on real estate in the Bahamas, including the purchase of a $16.4 million property for his parents; $195.2 million went to so-called "insiders," namely Executives at FTX and Alameda. (Blockworks)
According to previous news, Peter Easton, an accounting professor at the University of Notre Dame, testified in court on Wednesday that FTX customer deposits were reinvested in business and real estate, and used for political donations and charitable donations. It is reported that Easton was hired by the U.S. Department of Justice to track billions of dollars in funds from Alameda and FTX.
Easton said that around March 2021, total customer deposits fell below FTX’s bank balance, meaning that customer funds had lost support by then. By June 2022, when FTX deposits peaked, the exchange had only about $2 billion on hand to support $11.3 billion in customer deposits, leaving a funding gap of up to $9 billion.