US Department of Justice Confirms Commencing Investigating Alleged Funds’ Siphoning in FTX
Officials from the Department of Justice (DOJ) revealed contacting FTX’s overseers in parallel scrutiny on potential funds’ siphoning by former chief executive Bankman-Fried. DOJ officials indicated their investigations would neither merge nor interfere with the ongoing scrutiny of alleged misuse of users’ deposits.
Scope of DOJ’s Investigation
A DOJ informant revealed that the scope of the new investigation is to ascertain if Bankman-Fried engineered the funds siphoning to offshore accounts days before the bankruptcy filing. In particular, the DOJ anonymous source confirmed the investigation targets the former FTX chief executive role in engineering the outbound transactions to the Bahamas days before the November 11 bankruptcy filing. The informant added that the DOJ was investigating extensively to unearth the alleged users’ funds transfer to the affiliate firm Alameda Research.
The announcement of parallel investigations portrays a determined DOJ to avert FTX’s fraudulent scheme slipping under their watch as it happened previously in other crypto fraudsters.
Parallel Inquest into FTX Fraudulent Scheme
The DOJ scrutiny comes days after US senators penned an inquisitive letter to Silvergate Capital Corporation over the crypto bank’s involvement in facilitating FTX transfer users’ funds to Alameda. The US senators demanded a response over the apparent failure of the crypto bank to flag suspicious financial activity by the client.
The US legislators, led by Senator Elizabeth Warren, demanded Silvergate Capital disclose the trail of financial activities likely to have aided the loss of billions in digital assets.
The investigations on FTX’s downfall are gaining interest as users whose digital wealth is trapped or forever lost in the embattled crypto exchange allege the solid political connections of Bankman-Fried impede the case.
Blame Game over FTX Collapse
Meanwhile, Bankman-Fried still engages in Twitter duels with Binance chief executive Changpeng Zhao. Bankman-Fried lamented on Twitter that Zhao lied and walked out of a financial deal that could have prevented FTX collapse. Zhao termed the December 9 tweet portraying the unhinged character of Bankman-Fried for Binance exiting the negotiations.
The Twitter exchange concerns a failed $100 million deal involving Talor Swift. The sponsorship deal targeted to make the popstar represent the crypto exchange. The musician declined the sponsorship deal terming it expensive.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.
