Connect with us


US Probes how $372 Million Vanished After FTX Filed for Bankruptcy



(CTN News) – According to a source familiar with the investigation, Bloomberg News reported on Tuesday that federal authorities are looking into an alleged cybercrime that allegedly syphoned out more than $370 million from cryptocurrency exchange FTX hours after it filed for bankruptcy.

The report said that the Department of Justice’s criminal investigation into the stolen property is unrelated to the fraud case against FTX co-founder Bankman-Fried.

The Manhattan U.S. attorney’s office representative declined to confirm or comment on the matter, while FTX and the DoJ did not immediately reply to a request for comment from Reuters.

Bankman-Fried left his position as CEO, and FTX filed for bankruptcy in the United States last month after traders withdrew billions from the platform in three days and a competing exchange, Binance, abandoned a rescue plan.

According to a US prosecutor, the US Department of Justice charged Bankman-Fried with orchestrating a “fraud of epic dimensions” that cost FTX billions of dollars.

Bankman-Fried established FTX in 2019 and profited from a surge in the value of bitcoin and other digital assets to become a multi-billionaire and a significant contributor to American political campaigns.

Fears over the future of the cryptocurrency sector have increased due to the FTX collapse after the troubled exchange declared a “serious liquidity issue.”

A different company, Chainalysis, reported on November 20 that the stolen money had been bridged from ETH to Bitcoin and was “on the way.”

If the hacker attempted to cash out, the group alerted exchanges to be on the lookout.

According to ZachXBT, a Twitter user who monitors cryptocurrency breaches, some cash had also been transferred into a mixer, which mashes several coins together to obscure the sources.

Related CTN News:

Continue Reading

Recent News

Volunteering at Soi Dog

Learn Spanish Now

Learn Spanish

Buy FIFA Coins

cheap fifa coins