- The federal prosecutors in Manhattan have launched an investigation into Sam Bankman-Fried.
- The prosecutors seek to know whether Bankman-Fried deliberately inflated the price of two cryptos.
- The SEC and federal prosecutors are also investigating whether FTX’s transfer of consumer money to Alameda was illegal.
The federal prosecutors in Manhattan have launched an investigation into whether Sam Bankman-Fried deliberately inflated the price of two cryptos this spring, causing their demise and setting off a chain reaction that led to the collapse of his own crypto exchange last month.
The crypto media believes there was a likelihood that Bankman-Fried manipulated the prices of two interconnected currencies, TerraUSD and Luna, to benefit his firms; FTX and Alameda Research.
Furthermore, the Securities and Exchange Commission (SEC) and federal prosecutors are investigating whether FTX’s consumer money transfer to Alameda was illegal. In addition, FTX is being looked at for possibly breaking U.S. money-laundering rules, which demand that money-transfer companies identify their clients and report any potentially unlawful conduct to law enforcement.
In related news, the new management at the FTX has hired a team of forensic investigators from advisory firm AlixPartners that will assist in locating the billions of dollars that have vanished from the defunct Bitcoin exchange.
The forensics company will take charge of “asset tracing,” which involves finding and recovering lost digital assets. According to a lawyer for FTX’s creditors, “a large number of assets have either been taken or are missing” from FTX as of the end of November. The money has been moving via different crypto mixers and exchanges while being laundered, says the source.
In other news, a story claims that a businessman of Indian descent is suing the founder of the crypto exchange after losing $2 million when FTX crashed. The 27-year-old businessman first invested in FTX back in 2020. He added that a legal team representing him is pursuing legal action against Bankman-Fried for his alleged wire fraud.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
