DOJ Investigating $372 Million in Missing FTX Funds, Report Says
The criminal probe is reportedly separate from the fraud case against FTX co-founder Sam Bankman-Fried.
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 fraud case against FTX co-founder Sam Bankman-Fried, centers on more than $370 million that went missing mere hours after the cryptocurrency exchange declared bankruptcy. 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, which the Justice Department established last year to focus on cybercrime and illicit cryptocurrency activities. NCET is working with federal prosecutors in Manhattan who are running the criminal investigation into Bankman-Fried, 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 released on $250 million bail, said he and FTX co-founder Gary Wang borrowed more than $546 million in funds from Alameda Research, a trading firm started by Bankman-Fried, to purchase shares of Robinhood, a fee-free trading app.
The Justice Department didn't respond to a request for comment.