The US Attorney’s Office has set up a task force to track the $3 billion that has evaporated from the FTX cryptocurrency exchange.
The New York City Attorney’s Office has created a task force tasked with identifying and recovering billions of dollars of missing funds belonging to clients of the collapsed cryptocurrency exchange.
The task force is comprised of senior prosecutors with experience in securities and commodities fraud, government corruption, money laundering and international criminal enterprises.
Billions of dollars in losses
Investors in FTX have lost more than $8 billion due to alleged fraud in a now bankrupt crypto group, the SEC complaint says. The FTX companies are estimated to owe up to $3 billion to their largest creditors.
To protect clients’ assets from loss or theft, regulators in the Bahamas seized over $3.5 billion worth of crypto assets in late December.
Accusations against the former billionaire
The founder of the FTX exchange, Sam Bankman-Fried, is suspected of money laundering and numerous frauds. According to Reuters, he had to use $4 billion of his clients’ deposits to pay off the debt of his company, Alameda Research.
Bankman-Fried pleads not guilty. He was released after being arrested last month on $250m (£208m) bail. But if found guilty, he faces more than 100 years in prison.
Two of his closest associates have already pleaded guilty and are cooperating in an investigation that has shocked the entire cryptocurrency industry. In an interview before his arrest, the 30-year-old former billionaire admitted his mistakes but insists his actions were not intentional.
Source: Wprost
