FTX Accused of Misusing Customer Funds in Binance CEO Buyout

A witness in the trial against Sam Bankman-Fried, former CEO of FTX, testified that Bankman-Fried used $1.2 billion of customer funds to buy out Binance CEO Changpeng Zhao. The witness stated that Bankman-Fried deployed customer funds for various purposes, including venture investments and political donations. It remains unclear whether Zhao will be asked to return the funds, but bankruptcy law and civil law in the US provide avenues for the FTX estate to potentially claw back the money. However, enforcing the judgment abroad may be challenging, although it could have implications for Binance's future access to US markets and courts.