US Prosecutors Investigating SBF for a Supposed Scam
The prosecutors in the United States have started an investigation on the FTX founder SBF for a potential scam, as reported by Bloomberg on Friday. As per the reports, the prosecutors are frequently examining if the allegations against the crypto firm were true. According to the allegations, several million dollars were improperly transacted to the Bahamas when it filed for bankruptcy. The respective case was filed by FTX on the 11th of November this year.
Related: SBF Agrees to Testify in Front of Congressional Committee
Bankman-Fried Attracts US Prosecutors over Alleged Fund Manipulation
The officials from the US Justice Departments have reportedly communicated with the court-appointed supervisors of FTX this week for the investigation of the matter. The chiefly focused issue was related to the management of the consumer funds by the crypto exchange. The prosecutors are focused on discovering if any of the laws has been broken while transacting funds to Alameda Research.
Alameda Research is an investment platform that filed its bankruptcy request along with FTX in the previous month. The prosecutors are operating in the Southern District of New York. Nicolas Roos (the Assistant US Attorney) is also one of the prosecutors. Furthermore, they had a conference for a couple of hours in the current week would several people probing into the decline of the crypto exchange, as per the report.
Trending Now: FTX Exploiter Combines Holdings in ETH to Touch $302M
The respective conference took into account the officials from Justice Department, the SDNY, and the bankruptcy team under John J. Ray III (the new CEO of FTX). The officials from the Federal Bureau of Investigation and Sullivan & Cromwell-based lawyers additionally participated in that meeting, as per the report. Formally this week, it was reported by the New York Times that the US prosecutors are paying attention to if the FTX founder was engaged in manipulating the Luna and TerraUSD’s prices.
Prosecutors Examine FTX Founder’s Involvement in Terra (LUNA) Crash
The time selected for the investigation is around the happening of the enormous collapse of Terra Foundation. Bankman-Fried appeared in several interviews after the collapse of his crypto empire to dismiss the allegations raised against him. He denied having manipulated the funds of the consumers, saying that he never thought of defrauding anyone. Nonetheless, he did not explain the reasons behind enormous transactions to Alameda and simply posed that he was unaware.
