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

The US Division of Justice has launched a prison investigation into $372 million in stolen FTX belongings, in response to a brand new report from Bloomberg. 

The probe, which is impartial of the fraud case in opposition to FTX co-founder Sam Bankman-Fried, facilities on greater than $370 million that went lacking mere hours after the cryptocurrency alternate declared chapter, however has not but decided whether or not it was an inside job or the work of hackers, in response to an individual accustomed to the case, Bloomberg experiences. US authorities have thus far managed to freeze solely a small portion of the stolen funds, the report says.

The investigation is being run by the Nationwide Cryptocurrency Enforcement Group, which was established final yr to deal with 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.

Within the separate fraud case in opposition to Bankman-Fried, extra courtroom paperwork launched Tuesday reportedly present that the previous CEO, who was lately launched on $250 million bail, stated he and FTX co-founder Gary Wang borrowed greater than $546 million in funds from Alameda Analysis, a buying and selling agency began by Bankman-Fried, to buy shares of Robinhood, a fee-free buying and selling app. 

The Justice Division did not instantly reply to a request for remark.

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