US federal prosecutors might be constructing a fraud case in opposition to FTX founder and former CEO Sam Bankman-Fried. Bloomberg stories Justice Department officers met with the crypto trade’s chapter workforce this week to debate paperwork investigators intention to acquire from the corporate.
The assembly included prosecutors from the Southern District of New York, Assistant US Attorney Roos, brokers from the Federal Bureau of Investigation, and attorneys from FTX. Roos, notably, was concerned within the prosecution of Nikola founder Trevor Milton, who was convicted of deceptive traders earlier this 12 months. According to Bloomberg, potential fees weren’t mentioned on the assembly that occurred this week.
The Justice Department is “closely” inspecting whether or not FTX improperly transferred a whole bunch of thousands and thousands of {dollars} across the time the corporate declared chapter on November eleventh. It’s additionally probing whether or not the trade broke the regulation when it moved funds to sister firm Alameda Research.
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In his latest New York Times interview, Bankman-Fried denied knowingly misusing buyer funds. “Clearly, I made a lot of mistakes. There are things I would give anything to be able to do over again,” he mentioned. “I did not ever try to commit fraud on anyone.” He will testify earlier than the House Committee on Financial Services subsequent week, a panel that may even embrace testimony from FTX’s present CEO, John J. Ray III. Ray has accused Bankman-Fried of constructing “erratic and misleading public statements” about FTX.