Exclusive: At least $1 billion of client funds missing at FTX

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….FTX founder Bankman-Fried secretly moved $10 billion in funds to trading firm Alameda – sources

….Bankman-Fried showed spreadsheets to colleagues that revealed shift in funds to Alameda – sources

…Spreadsheets indicated between $1 billion and $2 billion in client money is unaccounted for – sources

….Executives set up book-keeping “back door” that thwarted red flags – sources

….Whereabouts of missing funds is unknown – sources

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(Reuters) – At least $1 billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter.

The exchange’s founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research, the people told Reuters.

A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.

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While it is known that FTX moved customer funds to Alameda, the missing funds are reported here for the first time.

The financial hole was revealed in records that Bankman-Fried shared with other senior executives last Sunday, according to the two sources. The records provided an up-to-date account of the situation at the time, they said. Both sources held senior FTX positions until this week and said they were briefed on the company’s finances by top staff.