How much customer money is missing from FTX?

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At Least US$1 Billion in Customer Funds is Missing from FTX

At least US$1 billion of customer funds have vanished from the collapsed cryptocurrency exchange FTX, according to individuals with knowledge of the situation. This financial shortfall was revealed through internal records shared by founder Sam Bankman-Fried with senior executives, indicating a significant gap in accounted-for assets. FTX subsequently filed for bankruptcy following a surge in customer withdrawals earlier in the week.
Secret Transfer of Customer Funds to Alameda Research

Records indicate that Sam Bankman-Fried secretly transferred approximately US$10 billion of customer funds from FTX to his associated trading firm, Alameda Research. While the movement of these funds between the entities is acknowledged, a substantial portion of this transferred amount is now unaccounted for. Sources familiar with the matter suggest that the missing funds could range between US$1 billion and US$2 billion, with one estimate placing the figure at about US$1.7 billion.
Unaccounted Funds Within Alameda's Assets

The internal financial records, which provided an up-to-date overview of FTX's situation, showed that between US$1 billion and US$2 billion of the funds moved to Alameda were not accounted for within the trading firm's assets. These spreadsheets did not specify the destination of this missing money, and sources indicate they are unaware of its whereabouts. The revelation of this financial hole emerged shortly before FTX filed for bankruptcy.
Allegations of a "Backdoor" in Book-Keeping System

Further examination by FTX's legal and finance teams uncovered that Bankman-Fried allegedly implemented a "backdoor" within FTX's bespoke book-keeping system. This alleged feature reportedly allowed for the alteration of financial records without triggering internal compliance or accounting alerts. This mechanism, if utilized, would have facilitated the movement of US$10 billion to Alameda without raising red flags. Bankman-Fried has denied the implementation of such a "backdoor."
Ongoing Investigations into FTX's Operations

The collapse of FTX and the disappearance of customer funds have attracted the attention of regulatory bodies. The U.S. Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Commodity Futures Trading Commission (CFTC) are reportedly conducting investigations into FTX.com's management of customer funds and its cryptocurrency lending activities. FTX, founded in 2019 and once valued at US$32 billion in January, has seen its control transferred to John J. Ray III, known for his role in the Enron Corp liquidation.

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How much customer money is missing from FTX?

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