Manipulation and disappearance of billions of dollars… Details of the last moments before the bankruptcy of FTX

as he entered FTX collapsed crypto exchange In bankruptcy protection, Reuters reports that between $1 and $2 billion in customer funds have disappeared from the cryptocurrency exchange.

Cryptocurrency exchange FTX CEO Sam Bankman Fried has transferred $10 billion in client funds from his cryptocurrency exchange to digital asset trading firm Alameda Research, according to an analysis by Reuters and The Wall Street Journal. .net”.

Alameda, also founded by Fred Benkman, is a subsidiary of FTX. Those reports are now being investigated by multiple regulators, including the Justice Department, as well as the Securities and Exchange Commission, which is investigating how FTX handles client funds, according to multiple reports.

Two sources who spoke to Reuters said much of the $10 billion sent to Alameda “has since disappeared.”

The report revealed that both broadcasters “held senior positions at FTX up until this week” and added that they “were briefed on the company’s finances by senior staff.”

One source put the gap at $1.7 billion. The other puts it in the $1 billion to $2 billion range.

“I disagree with the characterization of the $10 billion transfer of client funds to my private company,” Bankman wrote in a text message to Reuters, adding that “it was not a secret transfer.”

An emergency meeting in the Bahamas

On Sunday, Bankman Fried had a meeting with Nassau executives to review FTX’s books and see how much cash the company needed to cover the gap on its balance sheet.

Bankman Fried said in a tweet that FTX clients requested withdrawals of nearly $5 billion on Sunday, which he described as “the largest by a huge margin.” It was the day of Pinkman Fried’s emergency meeting in the capital of the Bahamas.

The heads of FTX’s regulatory and legal teams were in a meeting, where Bankman-Fried revealed multiple spreadsheets showing how much money FTX has lent to Alameda and for what purpose, Reuters reported.

These documents, which apparently reflect the company’s latest financials, showed the transfer of $10 billion in customer deposits from FTX to Alameda. They also revealed that some of that money — estimated at $1 billion to $2 billion — couldn’t be counted among Alameda’s assets.

It was also revealed that a “backdoor” into FTX Records was created using “custom software”.

The two sources, who spoke to Reuters, described it as a way for former CEO Bankman Fried to make changes to the company’s financials without reporting the deal either internally or externally. The mechanism could have theoretically prevented, for example, the $10 billion transferred to Alameda from being disclosed to its internal compliance team or external auditors.

Banker Fried completely denied the implementation of the so-called back door.