{"id":24092,"date":"2023-10-19T10:02:59","date_gmt":"2023-10-19T10:02:59","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-used-billions-in-customer-funds-for-binance-stake-buyback\/"},"modified":"2023-10-19T10:02:59","modified_gmt":"2023-10-19T10:02:59","slug":"ftx-used-billions-in-customer-funds-for-binance-stake-buyback","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-used-billions-in-customer-funds-for-binance-stake-buyback\/","title":{"rendered":"FTX used billions in customer funds for Binance stake buyback"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/10\/1697706956753-8a725f38-126d-4d6f-82d9-640d9fd87332-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/10\/1697706956753-8a725f38-126d-4d6f-82d9-640d9fd87332-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/10\/1697706956753-8a725f38-126d-4d6f-82d9-640d9fd87332-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/10\/1697706956753-8a725f38-126d-4d6f-82d9-640d9fd87332-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>FTX is accused of using customer deposits to repurchase Binance stake.<\/li>\n<li>An accounting professor hired by the US Department of Justice reveals over a billion dollars came from customer funds for the share buyback.<\/li>\n<li>FTX\u2019s proposed recovery plan offers hope, aiming for a 90% asset return to customers affected by the exchange\u2019s bankruptcy.<\/li>\n<\/ul>\n<p>In a shocking revelation, the ongoing legal proceedings surrounding the defunct cryptocurrency exchange FTX have unveiled that the exchange allegedly used customer funds to buy back its stake held by <a href=\"https:\/\/coinjournal.net\/exchanges\/binance\/\">Binance<\/a>.<\/p>\n<p>This development has raised serious concerns about the handling of customer deposits within the crypto industry.<\/p>\n<h2>Customer funds diverted for Binance share repurchase<\/h2>\n<p>During a court hearing, it was disclosed that FTX, a crypto exchange that filed for bankruptcy in November 2022, employed customer deposits to repurchase its shares from competitor Binance. Binance CEO Changpeng Zhao in November 2022 acknowledged that his company had received over $2.1 billion in Binance USD (BUSD) stablecoins and FTX\u2019s FTT tokens as part of this transaction.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">As part of Binance\u2019s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1\/4<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589283421704290306?ref_src=twsrc%5Etfw\">November 6, 2022<\/a><\/p>\n<\/blockquote>\n<p>The revelation has led to intense scrutiny and legal action, with an accounting professor from the University of Notre Dame, Peter Easton, being hired by the US Department of Justice to trace the flow of billions of dollars between Alameda, the parent company of FTX, and the exchange. Professor Easton confirmed that user deposits were redirected for various purposes, including reinvestment in businesses and real estate, political contributions, and charitable donations.<\/p>\n<p>The most significant revelation, however, was that over a billion dollars for the share repurchase had come directly from customer funds held by FTX. This has raised concerns about the exchange\u2019s financial practices and the protection of customer assets.<\/p>\n<h2>FTX\u2019s recovery plan<\/h2>\n<p>Amidst the controversy surrounding the use of customer funds, FTX\u2019s estate has proposed a settlement plan to address the loss of customer assets when <a href=\"https:\/\/coinjournal.net\/news\/this-week-in-crypto-ftx-files-for-chapter-11-bankruptcy\/\">the exchange declared bankruptcy<\/a> in November 2022. The plan aims to provide a 90% return of assets to affected customers, potentially offering relief to those who suffered losses during the exchange\u2019s collapse.<\/p>\n<p>This development signifies a potential path forward for affected customers and highlights the ongoing efforts to resolve the fallout from <a href=\"https:\/\/coinjournal.net\/research-center\/ftx-bankruptcy-second-biggest-loss-funds-history-of-crypto\/\">FTX\u2019s bankruptcy<\/a>. The legal and regulatory proceedings will be pivotal in determining the fate of this proposed recovery plan and the ultimate distribution of customer assets.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/ftx-trial-ftx-used-billions-in-customer-funds-for-binance-stake-buyback\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) FTX is accused of using customer deposits to repurchase Binance stake. An accounting professor hired by the US Department of Justice reveals over a billion dollars came from customer funds for the share buyback. FTX\u2019s proposed recovery plan offers hope, aiming for a [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":24093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24092"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=24092"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/24093"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=24092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=24092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=24092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}