FTX advisors received subpoenas from FBI agents during the last few months. On this account, the advisors are required by the law to provide the federal agency with customer transaction history.
Bloomberg recently posted customer documents that postulate the records of customer records of FTX account holders that were sent to the Federal Bureau of Investigation. The consultants are working for FTX on court orders for debt redistribution after the trading platform filed for bankruptcy.
In addition to the lawsuit against the FTX founder, the advisors working for the firm received subpoena notices during the last few months. On this account, the workers complied with the law and shared trading data generated from specified consumers.
FBI agents initiated a request to collect billing records from Alvarez and Marsal. It is a consultancy firm that is working for FTX as a financial advisory service.
FBI to Investigate FTX Customers
FBI officials are conducting an investigation of the cryptocurrency investors who were FTX account holders. On this account, federal agents have collected trading history and other relevant data from specified consumers.
The information has been sent to various FBI offices placed in Portland, Minneapolis, Cleveland, Oakland, and Philadelphia. However, billing records do not reveal the scope of the investigation and the target.
However, records include the listing of a grand jury subpoena. Alvarez and Marsal’s filing report submitted to the court indicates transaction data from FTX cloud computing storage in September. The data was shared with the FBI agents in accordance with a subpoena request initiated by the Philadelphia office of FBI.
At the same time, FBI Oakland conducted an investigation into the customer accounts and transaction records during July. In August, the firm extracted customer data related to the specific transactions to comply with FBI Portland subpoena.
FTX Advisors Accused of Sending User Data to FBI Officials
FTX customers are bearing the cost of the investigation. According to the Bloomberg article, Alvarez and Marsal sent FTX customers invoices with an aggregate value of $21,000 to cover FBI investigation charges.
On the other hand, the consultancy services provider has charged $100 million in fees from FTX since November 2022 as per the court filings. The said amount is set to be deducted from the total amount in customer-recovered funds for FTX account holders.
FTX’s new CEO, John J.Ray III has told media that FTX consumers will be able to recover 90% of their asset by the end of 2024. Ray maintained that the recovery is underway on account of a settlement contract between FTX creditors. In a recent court ruling, SBF was declared guilty in 7 accounts of fraud. He is currently facing probable 110 year behind bars with his sentencing set for 2024.
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