The US Department of Justice has launched a criminal investigation into hundreds of millions of dollars in stolen FTX assets, Bloomberg reported Tuesday.
The probe, which is reportedly independent of the, centers on more than $370 million that mere hours after the cryptocurrency exchange . It hasn't yet been determined whether it was an inside job or the work of hackers, Bloomberg reported. US authorities have so far managed to freeze a small portion of the stolen funds, the news outlet said, citing an unnamed person familiar with the case.
The investigation is being run by the National Cryptocurrency Enforcement Team, whichto focus on cybercrime and illicit cryptocurrency activities. NCET is working with federal prosecutors in Manhattan who are running the criminal investigation into , who's accused of mismanaging billions in customer funds to prop up FTX, and faces eight counts of conspiracy and criminal activity related to wire fraud, commodities fraud, securities fraud, money laundering and violation of campaign finance laws.
In the separate fraud case against Bankman-Fried, more court documents released Tuesday reportedly show that the former CEO, who was recently , said he and FTX co-founder Gary Wang borrowed more than $546 million in funds from , a trading firm started by Bankman-Fried, to purchase shares of , a fee-free trading app.
The Justice Department didn't respond to a request for comment.