DOJ investigating $372 million in missing FTX funds, reports say
The US Department of Justice has launched a criminal investigation into $372 million in stolen FTX assets, according to a new report from Bloomberg.
The probe, which is independent of thefocuses on over $370 million that disappeared just hours after the cryptocurrency exchange , but has not yet determined whether it was an inside job or the work of hackers, according to a person familiar with the matter, Bloomberg reports. US authorities have so far managed to freeze only a small portion of the stolen funds, the report said.
The investigation is being conducted by the National Cryptocurrency Enforcement Team, whichfocus on cybercrime and illicit cryptocurrency activities. NCET is working with Manhattan federal prosecutors leading the criminal investigation into who is accused of mismanaging billions of customer funds to support FTX, and faces eight counts of conspiracy and criminal activity related to wire fraud, commodity fraud, securities, money laundering and violation of campaign finance laws.
In the separate fraud case against Bankman-Fried, other court documents released on Tuesday reportedly show the former CEO, who was recentlysaid he and FTX co-founder Gary Wang borrowed more than $546 million from a commercial company created by Bankman-Fried, to buy shares of a free trading app.
The Justice Department did not immediately respond to a request for comment.