According to Bloomberg’s report, which is based on a person familiar with the subject, Sam Bankman-Fried and cryptocurrency Preparing for a potential fraud case against others who played a role in the collapse of giant FTX, US prosecutors examine how funds moved outside the United States as the stock market executive slid into bankruptcy.
U.S. Assets To Be Examined Whether FTX Smuggled To Central Bahamas
The person, who said prosecutors were closely examining whether hundreds of millions of dollars were improperly transferred to the Bahamas when FTX filed for bankruptcy in Delaware on Nov. 11, declined to be named because he was not authorized to discuss the case publicly.
He said Justice Department officials met with FTX’s court-appointed auditors this week to discuss the materials they aim to collect, as the company launches a comprehensive investigation into how the company handles customers’ cash and assets.
It is also being investigated whether FTX broke the law by transferring funds to Alameda Research, the bankrupt investment company founded by Bankman-Fried.
Bankman-Fried, based in the Bahamas and not charged with any crime, admitted to making serious mismanagement at FTX, but categorically denied that he knowingly misused clients’ funds.
The New York Times reported this week that federal prosecutors are also examining whether Bankman-Fried engaged in market manipulation by orchestrating transactions that led to the collapse of the TerraUSD ecosystem earlier this year.
Attorneys for the Southern District of New York, including U.S. Assistant Attorney Nicolas Roos, met for nearly two hours in a lower Manhattan conference room this week with the many investigating the collapse of FTX.
*Not investment advice.
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