To speed up customer funds recovery, FTX Task Force was formed
Tuesday, January 3rd, Manhattan U.S. Attorney’s Office declared the formation of an FTX Task Force. This Task Force will be devotedly focused on all investigations and charges against the company. The task force was formed to find and recover assets from victims of the collapse of the exchange.
This was the result of the disgraced founder of FTX appearing in Manhattan District Court to plead not guilty in his criminal case. Sam Bankmna Fried’s trial will be held later this year, on October 2, 2023. SBF is being accused of financial fraud and other financial offenses. He could be facing 115 years in prison.
SBF is currently being held on a $250 million bail, but is currently under house arrest at his parent’s home. SBF is not alone. Former CEO of Alameda and FTX cofounder Gary Wang and Caroline Ellison are also being charged. Damian Williams, Manhattan U.S. attorney, stated that Tuesday’s statement included the following:
“The Southern District of New York is working round the clock to respond the implosion of FTX. To ensure that this urgent work continues, we are launching the SDNY FTX Task Force, which will be powered by all of SDNY’s resources and expertise until justice is done.
The FTX Task Force
The Manhattan District Court will form a task force that will include attorneys from the Money Laundering, Securities and Commodities Fraud, Transnational Criminal Enterprises departments and Public Corruption. This task force will be led by Andrea Griswold (Williams’ senior deputy).
According to estimates by the Securities and Exchange Commission, customers lost $8 billion due to the collapse of FTX and Alameda Research.
Alameda Research, a hedge fund managed by Bankman-Fried, owned a large stake in FTX’s native crypto FTT tokens. They used this collateral to secure billions of dollars in loans. After the scandal was exposed, Binance announced that FTT would be sold to them. This caused a large capital outflow. FTX declared bankruptcy in mid-November 2022.
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