FTX CEO, Lawyers Meeting Federal Prosecutors In New York

FTX Latest News: According to reports, FTX new CEO John Ray had along with bankruptcy lawyers met with Manhattan federal prosecutors investigating the FTX collapse. The prosecutors are also looking into allegations that FTX misused customer funds and lost billions or dollars. In a different investigation, the US SEC is also looking into allegations of misuse of user funds by FTX US. It is said that the meeting took place on Thursday in New York.

Reports also indicated that the prosecutors were looking into whether FTX misappropriated customer funds for trades. This is apart from another allegation that FTX founder Sam Bankman-Fried was the reason behind depegging of TerraUSD (UST) earlier in 2022.

Also Read: FTX News: Kevin O’Leary Claims He Can’t Call SBF Guilty Unless He’s Tried

“Market Manipulation”

According to The New York Times, the federal investigation is focused on whether FTX manipulated the markets for two crypto tokens – TerraUSD and LUNA. SBF is facing a broader inquiry into potential market manipulation, the report added. Earlier, reports suggested Terra co-founder Do Kwon blaming Sam Bankman-Fried and Genesis for the Terra crisis. Kwon said he believes Genesis provided $1 billion in TerraUSD (UST) stablecoin to SBF before the UST depeg.

In the last few weeks, the federal prosecutors tried to collect information from investors associated with FTX, the report said quoting sources. The authorities sought details of communications made with anyone from the crypto exchange. This could be an attempt to gather documentary evidence of Sam Bankman-Fried‘s involvement. Legal experts believe that it is only a matter of time before the prosecutors find enough evidence against SBF before arresting him.

XRP lawyer John Deaton recently said there was a lot of evidence already out there to jail SBF. He added that the offence committed by the crypto exchange amounts to theft.

Also Read: Has The Terra Classic (LUNC) Revival Rally To $0.001 Started?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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