In the criminal proceedings against FTX founder Sam Bankman-Fried, the US Attorney’s Office for the New York borough of Manhattan is now setting up a task force to track down stolen funds. That reported CNBC, citing a press release from the agency. “The Southern District of New York is working around the clock to respond to the FTX implosion,” prosecutor Damian Williams said in the statement. Everyone must pull together, it is said.
The working group consists of several prosecutors specializing in securities and commodity fraud, corruption, money laundering and cross-border crime. This is said to use their “cyber skills” to confiscate funds.
At the end of last year, a total of 4.5 billion US dollars emerged. In court, FTX declared the find of one billion US dollars. A little later, the Bahamian securities regulator secured more $3.5 billion. The US Securities and Exchange Commission speaks of a total of 8 billion US dollars that customers are said to have lost in the wake of the FTX demise. According to other estimates, the former “model stock exchange” has a total of up to 50 billion US dollars in outstanding claims against it.
FTX founder pleads ‘not guilty’
After FTX filed for bankruptcy in the US state of Delaware in mid-November 2022, the SDNY launched an investigation into the crypto exchange. A little later, prosecutors filed criminal charges against founders Sam Bankman-Fried and Gary Wang, and against Caroline Ellison, former CEO of hedge fund Alameda Research. The latter put in each case admission of guilt ab.
Bankman-Fried pleaded not guilty at his hearing on Tuesday. In addition to fraud, the public prosecutor’s office also accuses the 30-year-old American of violating campaign finance laws. If convicted, the FTX founder faces a total of three charges up to 115 years in prison.
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