federal prosecutors FTX focused on the illegal investments made by its founder, Sam Bankman-Fried. Allegedly, Bankman-Fried has invested $400 million in Modulo Capital, which is located on the same campus as the FTX head office. Prosecutors are investigating whether this investment was made with client funds.
A Bahamas prosecutor disclosed the existence of the hedge fund before the boss of the failed stock market was extradited to the United States. Authorities found that SBF transferred funds to the said mutual fund shortly before the stock market collapsed.
The prosecution believes that with this investment, Bankman-Fried smuggled goods out of the fire before bankruptcy.
University of Georgia bankruptcy professor Lindsey Simon commented:
“Tracking major transactions against a company, fund or debtor before filing for bankruptcy is complete is crucial to the progress of the case.”
Latest Status of Sam Bankman-Fried
Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was arrested in the Bahamas last month. SBF returned to the USA within a week; He is facing 8 separate charges including money laundering, political campaign finance and cyber fraud.
After the $ 250 million bail paid by SBF, the legal process continues without arrest.
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