Legal scrutiny continues
Federal authorities are trying to trace the hackers who wiped out $370 million of customers’ funds soon after FTX filed for bankruptcy under Chapter 11.
As reported by The Washington Post, Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) filed charges of fraud against SBF, claiming that he defrauded FTX investors. Furthermore, the Justice Department charged SBF and several others with money laundering, conspiracy, violating campaign finance laws and more.
Recently, the former CEO and co-founder of FTX was arrested by the Royal Bahamas Police Force on December 12, 2022, at 6:00 p.m. at his home in Nassau, Bahamas, on request of the U.S. government. Attorney General Ryan Pinder stated, that “As a result of the notification received and the material provided therewith, it was deemed appropriate for the Attorney General to seek SBF’s arrest and hold him in custody pursuant to our nation’s Extradition Act.”
According to CNBC, SBF’s former associates, FTX co-founder Gary Wang and Alameda Research’s former CEO Caroline Ellison pleaded guilty under federal charges, as stated U.S. Attorney Damian Williams. Wang, 29, is also charged for wire fraud conspiracy, securities fraud and more.
According to CNBC, CFTC listed “Ellison with fraud and material misrepresentations in connection with the sale of digital asset commodities in interstate commerce, and charges Wang with fraud in connection with the sale of digital asset commodities in interstate commerce.”
White Knight — and his Dark Nights
The now-broke crypto king SBF spent his mid-December holidays in the Fox Hill Bahamas’s only prison. Local attorney Romana Farquharson, described the prison as overcrowded and with worst sanitary conditions. The inmates are forced to survive in “harsh” situations, between rats, maggots and insects. The prisoners end up developing bed sores due to lying on bare ground, as The Wall Street Journal reported.
As per media reports, workers were found installing security cameras at Fried’s parents’ home in Palo Alto, California where he is in house arrest. He is ordered to be under “strict supervision,” with his exact location tracked 24-hours via electronic wrist bracelet. His bail was allowed on a bond of $250 million.
As stated by Wu Blockchain, the FTX hackers transferred stolen funds to Singapore-based crypto exchange OKX, via Bitcoin mixer ChipMixer. As mentioned in a tweet posted on Twitter:
According to Bloomberg, the investigation will be carried out by the DOJ’s National Cryptocurrency Enforcement Team, a group of legal prosecutors who investigate digital assets, as stated by an anonymous person. The team is finding clues with federal prosecutors in the criminal and fraudulent charges filed against SBF.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/12/29/united-states-authorities-in-search-of-370-million-ftx-funds-hackers/