Former senior lawyer Sam Bankman-Fried stated that asset management giant Apollo Global Management withdrew from the FTX rescue plan at the last minute after learning that billions of dollars of customer funds were missing and the exchange could not provide legal basis for the shortage. FTX collapsed a few days later.

Can Sun, FTX's general counsel, told the jury during Sam Bankman-Fried's criminal fraud trial that he "never approved" of FTX lending customer funds to sister company Alameda Research. Can Sun served as FTX's general counsel from August 2021 to November 2022, during the period when the exchange collapsed. When asked if he agreed to Alameda using FTX customer funds, he said "absolutely not."

According to the US Department of Justice (DOJ), they have hired accounting professor Peter Easton from the University of Notre Dame to track billions of dollars in funds between Alameda and FTX. During the SBF trial hearing, the professor testified that FTX used customer funds to repurchase all of its shares held by Binance in 2022, with over $1 billion coming from FTX's customer funds. Easton testified that user deposits were also reinvested in businesses and real estate, used for political donations, and donated to charitable organizations. Previously, in 2019, as part of a strategic partnership between the two companies, Binance invested an undisclosed amount of funds in FTX. Binance CEO CZ stated in an article in 2022 that the company had received over $2.1 billion in BUSD and FTX's FTT tokens as part of the buyback. (CoinDesk) Earlier reports stated that in 2021, SBF repurchased FTX shares held by CZ for $2.275 billion in response to regulatory scrutiny.

A court hearing on Wednesday revealed that FTX used client funds to buy back all shares held by its competitor Binance. As part of the buyback, Binance CEO Zhao Changpeng stated in a 2022 article that the company received over $2.1 billion in BUSD and FTT tokens. Peter Easton, an accounting professor at the University of Notre Dame, was employed by the US Department of Justice (DOJ) to track the billions of dollars in transactions between Alameda and FTX, which is also part of the ongoing SBF trial.

During the fraud trial of Sam Bankman-Fried, prosecutors presented evidence of his vulgar messages to journalists about regulators. The messages included his belief that regulators "make everything worse" and his prior support for cryptocurrency regulation being mere public relations.

Peter Easton, an accounting professor at Notre Dame University, appeared in court to explain the severity of Alameda Research's alleged misuse of FTX client and investor funds. Based on Easton's testimony and a large number of process diagrams, between January 4, 2022 and February 11, 2022, $1.1 billion of FTX client deposits flowed to Alameda Research, with most of it being used for political donations, real estate investments, venture capital, and charitable donations. In June 2022, Alameda's debt to FTX clients reached $11.3 billion, while Alameda and FTX's bank accounts had about $2.3 billion. This means that if every client chooses to withdraw their funds, the shortfall that Alameda and FTX cannot make up will reach $9 billion.

According to The Block, court documents show that FTX had agreed to pay nearly $100 million in sponsorship fees to Riot Games, the developer of "League of Legends," within seven years. After FTX announced bankruptcy, Riot Games began trying to withdraw from the deal at the end of last year.

According to court documents presented as evidence in Sam Bankman-Fried's criminal trial, FTX agreed to pay nearly $100 million in sponsorship fees to the development team of the game League of Legends, Riot Games, who agreed to receive nearly $100 million over seven years. After FTX declared bankruptcy due to customer losses, Riot Games began trying to withdraw from the deal at the end of last year. The documents also show that FTX agreed to provide approximately $42 million to the Tomorrowland music festival before 2026, an event frequently attended by top DJs such as Solomun. The Coachella music festival, held annually in Southern California, also signed a $25 million agreement with FTX. This spreadsheet details dozens of sponsorship agreements signed by FTX during the crypto bull market, which prosecutors included as evidence on Monday and released in full today.

FTX exchange clients could receive a payout of $9.2 billion by mid-2024 as part of the ongoing bankruptcy proceedings. The agreement between creditors and the new management of the platform marks a significant milestone in resolving clients' property disputes. The proposed plan involves segregating FTX assets into three categories, with platform users receiving approximately $8.9 billion and the American division receiving $166 million. The settlement is subject to court approval, with an application deadline of December 16, 2023.

FTX and FTX US customers may receive over 90% of their assets back by Q2 2024, according to a proposed settlement reached between FTX debtors and creditors. The settlement includes a "Shortfall Claim" in which FTX estimates that customers of FTX.com and FTX US would collectively receive 90% of assets available for distribution. FTX expects these funds to be disbursed by the end of Q2 2024 if approved by the Bankruptcy Court.