DOJ Investigating $372 Million in Lacking FTX Funds, Studies Say


The US Division of Justice has launched a legal investigation into $372 million in stolen FTX property, in accordance with a brand new report from Bloomberg

The probe, which is unbiased of the fraud case in opposition to FTX co-founder Sam Bankman-Fried, facilities on greater than $370 million that went lacking mere hours after the cryptocurrency change declared chapter, however has not but decided whether or not it was an inside job or the work of hackers, in accordance with an individual aware of the case, Bloomberg experiences. US authorities have thus far managed to freeze solely a small portion of the stolen funds, the report says.

The investigation is being run by the Nationwide Cryptocurrency Enforcement Workforce, which was established final yr to give attention to cyber crime and illicit cryptocurrency actions. NCET is working with federal prosecutors in Manhattan who’re working the legal investigation into Bankman-Fried, who’s accused of mismanaging billions in buyer funds to prop up FTX, and faces eight counts of conspiracy and legal exercise associated to wire fraud, commodities fraud, securities fraud, cash laundering and violation of marketing campaign finance legal guidelines.

Within the separate fraud case in opposition to Bankman-Fried, extra courtroom paperwork launched Tuesday reportedly present that the previous CEO, who was lately launched on $250 million bail, stated he and FTX co-founder Gary Wang borrowed greater than $546 million in funds from Alameda Analysis, a buying and selling agency began by Bankman-Fried, to buy shares of Robinhood, a fee-free buying and selling app. 

The Justice Division did not instantly reply to a request for remark.

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