U.S. prosecutorsPutting the foundations for You can find more information at potential fraud Sam Bankman-Fried & others in the collapse and demise of cryptocurrency giant FTXThey are examining how the funds are held by According to one person familiar with it, the exchange operator moved out of the US while it was heading toward bankruptcy.

Prosecutors are trying to determine if hundreds of millions of dollars were transferred improperly to the Bahamas at the time of. FTX’s Nov. 11 bankruptcy filing in Delaware, the person said, asking not to be named without authorization to discuss the case publicly.

Justice Department officials launch a comprehensive investigation into how they were able to get there. FTX handled customers’ cash and assets, they met this week with FTX’s court-appointed overseers to discuss materials they aim to gather, the person said. They’re also digging into whether FTX Break the law by Transfer funds to Alameda Research. This bankrupt investment firm was also founded. by Bankman-Fried is an area of inquiry previously reported.

Bankman-Fried, who’s in the Bahamas and hasn’t been charged with any crimes, has admitted to grievous managerial errors at FTX but steadfastly denied that he ever knowingly misused customers’ funds. A spokesperson for Bankman-Fried declined comment Friday

The New York Times This week, it was reported that the federal prosecutors They are also looking into whether Bankman Fried was involved in market manipulation by Arranging trades that caused the TerraUSD ecosystem to collapse earlier in the year.

Prosecutors from the Southern District of New York, with Assistant US Attorney Nicolas Roos included, met for About two hours of investigation time this week in a lower Manhattan conference room with dozens of people FTX’s collapse. The organizational meeting did not discuss potential charges. The spokesperson for The Southern District declined to comment.

It was attended by representatives of the Washington Justice Department, the Federal Bureau of Investigation and the bankruptcy team. by John J. Ray III, who was elected FTX’s chief executive officer last month. Lawyers for FTX from Sullivan & Cromwell, including former Securities and Exchange Commission enforcement director Steve Peikin and former Manhattan federal prosecutor Nicole Friedlander, were also present, the people said. 

Nikola Corp was prosecuted by Roos. founder Trevor Milton was convicted of deceiving investors in the electric vehicle company. 

Bankman-Fried gave a series media interviews over the past month in which he described accounting errors that obscured the extent FTX’s ties with Alameda and the risks that created. On Friday, he said on Twitter that he’s willing to testify at a Dec. 13 hearing The dissolution of his crypto empire was discussed before the US House Financial Services Committee. 

Bahamas-based FTX and more than 100 related entities, including the company’s US arm, sent shock waves across the crypto ecosystem with their bankruptcy filing last month. The group and its subsidiaries were both dissolved. founder Regulators are now closely watching and evaluating the situation. prosecutors In the US and internationally.

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