Dec 27 (Reuters) – Federal prosecutors are investigating an alleged cybercrime that drained greater than $370 million from crypto trade FTX hours after it filed for chapter, Bloomberg Information reported on Tuesday citing an individual conversant in the case.
The prison probe into the stolen belongings, launched by the Division of Justice is separate from fraud case towards FTX co-founder Sam Bankman-Fried, the report added.
A spokesperson for the Manhattan U.S. legal professional’s workplace stated he couldn’t verify or touch upon the difficulty, whereas DoJ and FTX didn’t instantly reply to a Reuters request for remark.
FTX filed for U.S. chapter final month and Bankman-Fried stepped down as chief government, after merchants pulled billions from the platform in three days and rival trade Binance deserted a rescue deal.
The U.S. Division of Justice accused Bankman-Fried of inflicting billions of {dollars} of losses associated to FTX, which a U.S. prosecutor known as a “fraud of epic proportions.”
Bankman-Fried based FTX in 2019 and rode a increase within the values of bitcoin and different digital belongings to change into a billionaire a number of occasions over in addition to an influential donor to U.S. political campaigns.
The FTX collapse has fanned fears about the way forward for the crypto business after the beleaguered trade outlined a “extreme liquidity disaster”.
Reporting by Manya Saini in Bengaluru; Enhancing by Shailesh Kuber
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