According to sources, U.S. prosecutors are investigating potential fraud cases involving FTX founder SBF and others involved in FTX’s bankruptcy.
Prosecutors are now scrutinizing whether hundreds of millions of dollars were improperly transferred to the Bahamas when FTX filed for bankruptcy in Delaware on Nov. 11. Sources said that U.S. Justice Department officials have begun a comprehensive investigation into how FTX handles customers’ cash and assets, met with court-appointed monitors this week to discuss the materials they intend to collect, and are also delving into whether FTX illegally passed the funds. Transferred to Alameda Research.
According to previous reports, sources said that federal prosecutors in Manhattan are investigating whether FTX founder Sam Bankman-Fried (SBF) manipulated the UST and LUNA markets to benefit entities he controls, including FTX and Alameda Research.
Sources say the investigation is in its early stages, and it’s unclear whether prosecutors have determined any wrongdoing by SBF or when they began focusing on the UST and LUNA deals.