by Angus Berwick
NEW YORK (Reuters) – At least $1 billion taken from customer deposits at crypto-asset exchange FTX has disappeared, according to two people familiar with the matter.
Two sources told Reuters that former FTX chief executive Sam Bankman-Fried transferred $10 billion from FTX client deposits to his financial research firm, Alameda Research.
Much of that sum has since disappeared, they added. One source puts the total amount of missing funds at $1.7 billion. The other estimates it at $1 billion to $2 billion.
This is the first time that mention has been made of funds having disappeared in the transfer.
That detail came to light last Sunday when Sam Bankman-Fried shared files with other executives, the sources say.
The documents presented by the former FTX chief executive provided an updated account of the company’s financial situation at that time, they said.
FTX announced on Friday the opening of a safeguard procedure in the United States after a liquidity crisis which shook the entire sector and led the financial authorities to intervene.
In a message to Reuters, Sam Bankman-Fried said he “did not agree with the description” given of the $10 billion transfer.
“We didn’t (make this transfer) secretly,” he said. Asked about the missing funds, Sam Bankman-Fried replied: “???”
Neither FTX nor Alameda responded to a request for comment.
(Report Angus Berwick; French version Camille Raynaud)
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