DOJ Investigating $372 Million in Missing FTX Funds, Reports Say


The US Department of Justice has launched a prison investigation into $372 million in stolen FTX property, in line with a brand new report from Bloomberg. The probe, which is impartial of the fraud case towards 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 line with an individual acquainted with the case, Bloomberg stories. US authorities have up to now managed to freeze solely a small portion of the stolen funds, the report says.

The investigation is being run by the National Cryptocurrency Enforcement Team, which was established final 12 months to concentrate on cyber crime and illicit cryptocurrency actions. NCET is working with federal prosecutors in Manhattan who’re working the prison investigation into Bankman-Fried, who’s accused of mismanaging billions in buyer funds to prop up FTX, and faces eight counts of conspiracy and prison exercise associated to wire fraud, commodities fraud, securities fraud, cash laundering and violation of marketing campaign finance legal guidelines.

In the separate fraud case towards Bankman-Fried, extra courtroom paperwork launched Tuesday reportedly present that the previous CEO, who was not too long ago launched on $250 million bail, mentioned he and FTX co-founder Gary Wang borrowed greater than $546 million in funds from Alameda Research, a buying and selling agency began by Bankman-Fried, to buy shares of Robinhood, a fee-free buying and selling app. The Justice Department did not instantly reply to a request for remark.