A forensic accountant at Sam Bankman-Fried’s trial is investigating the whereabouts of $9 billion in missing FTX customer funds. The accountant confirmed that FTX has indeed misused customer funds. Peter Easton, an accounting professor from the University of Notre Dame, provided evidence that user deposits were reinvested, used for political contributions, and donated to charity. It was also discovered that certain transactions involving SBF required customer funds. Additionally, FTX’s customer funds experienced a significant loss of backing as early as March 2021. The trial also revealed large political donations made by SBF, as well as the involvement of FTX in investments and cryptocurrency mining. The Head of Engineering at FTX expressed feeling betrayed by SBF and questioned the company’s finances.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| FTX misuse of customer funds | From misuse of customer funds to transparency and accountability | Increased regulations and oversight in the cryptocurrency industry | Public outcry and demand for more transparency and accountability |
| Reinvestment of user deposits | From reinvestment of user deposits to proper handling of customer funds | Stricter regulations and enforcement in the cryptocurrency industry | Legal consequences and public backlash |
| FTX founder denying improper use of customer funds | From denial to acknowledgement of improper use of customer funds | Heightened public scrutiny and demand for accountability | Legal consequences and public pressure |
| Loss of customer funds | From loss of customer funds to enhanced security measures | Improved security protocols and systems in the cryptocurrency industry | Customer trust and protection |
| Investment in external firms without customer knowledge | From undisclosed investments to full transparency in investment practices | Stricter regulations and disclosure requirements in the cryptocurrency industry | Public demand for transparency and accountability |
| Political donations and contributions | From undisclosed political donations to increased transparency in political contributions | Stricter regulations and disclosure requirements for political donations | Public demand for transparency and accountability in the political sphere |
| Betrayal and coordination of fraud | From coordination of fraud to increased internal controls and ethical practices | Heightened focus on internal controls and ethics in the cryptocurrency industry | Public outrage and demand for ethical practices |
| Shift in focus from finances to delivery | From focus on finances to focus on delivery and customer satisfaction | Increased emphasis on customer satisfaction and product delivery in the cryptocurrency industry | Market competition and customer demands for better products and services |