FTX invests customer deposits in multiple enterprises, with a funding gap of up to 9 billion US dollars as of June 2022.

According to BlockBeats news on October 19th reported by CoinDesk, Peter Easton, an accounting professor at Saint Mary's University, testified in court on Wednesday that FTX customer deposits were reinvested in business and real estate, and used for political and charitable donations. Easton was hired by the US Department of Justice to track billions of dollars in funds from Alameda and FTX. Easton stated that around March 2021, the total amount of customer deposits was less than FTX's bank balance, meaning that customer funds had already lost support at that time. By June 2022, when FTX deposits reached their peak, the exchange had only about $2 billion to support over $11 billion in customer deposits, resulting in a funding gap of $9 billion. Therefore, Easton concluded that the entire acquisition of Modulo Capital was completed using customer funds. Modulo Capital is a financial company headquartered in the Bahamas under FTX. Easton's investigation also showed that most of FTX's investment in SkyBridge Capital was completed using customer funds. In addition, most of the funds invested by FTX in the Bitcoin mining company Genesis Digital Assets, totaling $550 million, also came from customer deposits. Furthermore, FTX customer funds also flowed into a bank account of Paper Bird, Inc., an entity solely owned by SBF. "Most" of the $100 million invested by SBF through Paper Bird in the mobile banking platform Dave, Inc. also came from FTX customers.