The US Attorney Damian Williams reportedly announced a task force to look over the case of crypto exchange FTX collapse. Williams is the federal prosecutor in FTX’s case including founder Sam-Bankman Fried and ensured that the investigation is going on track given that SDNY is working around the clock.
The United States Attorney’s Office for the Southern District of New York (SDNY) formed the unit ‘SDNY FTX Task Force.’ It will be working to look over the ongoing investigations and prosecutions about the fall of Bahamian crypto exchange. Along with this, the task force will also be making efforts to trace the customer funds lost due the mishap with FTX and recover it.
In order to continue its given tasks, the task force will be using the resources and expertise facilitated by SDNY itself until the case leads to justice, said Williams. The SDNY is continuously working towards within the case of FTX’s untimed fall.
As per SDNY, the team of SDNY FTX Task Force will have senior prosecutors from the United States Securities and Commodities’ distinct units including fraud, public corruption, transnational crime enterprises and money laundering. These were said to handle the FTX case’s “investigation and prosecution.”
The lost customer funds after the crypto exchange filed for bankruptcy, remained the burning issue within the case. There were several efforts made to recover but went into vain. Task force will be managing to trace and recover the funds using the cyber and asset forfeiture capabilities.
Noteworthy is that earlier the Sam Bankman-Fried founded exchange firm also made efforts for the same. The company hired AlixPartners, a financial advisory firm, seeking the tracing of the lost customer funds.
FTX filed for bankruptcy under Chapter 11 Bankruptcy Code in November 2022. With this mishap, the funds and assets of customers using the firm got stuck and some of it lost as a result of a hack that took place in the following days.
Founder and former CEO Sam Bankman-Fried stepped down from his designation. Later on SBF got arrested by Bahamian police and SDNY tried for his extradition to the US. In the US court, he is likely to face the hearing about eight different charges put against him.
Source: https://www.thecoinrepublic.com/2023/01/04/sdny-ftx-task-force-will-look-for-lost-customer-funds-in-ftx-collapse/