The Ministry of Justice is investigating possible fraud by Sam Bankman-Fried. The FTX fiasco isn’t done talking.
US federal prosecutors are reportedly building a fraud case against the founder, former CEO of FTXSam Bankman-Fried. Bloomberg reports that Justice Department officials met with the team handling the crypto exchange’s bankruptcy this week to further discuss documents investigators are seeking from the company.
The Ministry of Justice is investigating possible fraud by Sam Bankman-Fried
Among the participants in this meeting, prosecutors for the Southern District of New York, attorney Roos’ assistant, agents from Federal Bureau of Investigation as well as lawyers from FTX. Roos was notably involved in the trials of Trevor Milton, founder of Nikola, who was found guilty of defrauding investors a few months ago. If we are to believe Bloombergthe potential charges were not discussed during this meeting.
The Justice Department is looking “closer” into whether FTX improperly transferred hundreds of millions of dollars around the time the company filed for bankruptcy on Nov. 11. The Justice Department also wants to know whether the exchange violated the law when it moved funds to its sister company Alameda Research.
The FTX fiasco isn’t done talking
In his latest interview to New York TimesSam Bankman-Fried denied misappropriating client funds. “Obviously, I made a lot of mistakes. There are things that I would give everything I have to do them again,” he declared. “I never tried to defraud anyone.” He will testify before d House Committee on Financial Services in the coming days, a jury that will also include testimony from the current CEO of FTX, John J. Ray III. The latter accused Sam Bankman-Fried of making “inconsistent and misleading public statements” regarding FTX.