US Feds Created FTX Task Team To Track Stolen User Cash - Blockchain.News

US Feds Created FTX Task Team To Track Stolen User Cash

The Southern District of New York U.S. Attorney's Office created the FTX Task Force. The exchange collapse task group will investigate and prosecute. It also seeks billions in consumer money. FTX founder Sam Bankman-Fried denies all eight criminal allegations.

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The United States Attorney's Office for the Southern District of New York (SDNY) has established the FTX Task Force with the mission to "trace and recover" any customer funds that may have been lost as a result of the collapse of the exchange, in addition to handling investigations and prosecutions connected to the incident.

The news was revealed in a statement issued by the United States Attorney for the District of Columbia, Damian Williams, who is serving as the federal prosecutor in the FTX case involving founder Sam Bankman-Fried.

The office of the Manhattan district attorney has filed many charges against Bankman-Fried. These charges include wire and securities fraud, conspiracy to conduct wire and securities fraud, money laundering, and violation of rules governing campaign funding.

In the meanwhile, the company would employ its asset forfeiture and cyber skills to track down and retrieve the billions of dollars worth of client cash that have gone stolen, it was said.

AlixPartners, a financial advising business, was recruited in December by the new management of FTX to undertake asset-tracing for FTX's missing digital assets. This effort was identical to the one that was already underway by the new management of FTX.

Based on the reports, the United States Attorney's Office in Manhattan began their investigation into the failure of FTX immediately after the company filed for bankruptcy on November 11th.

According to its website, the United States Attorney's Office for the Southern District of New York is well-known for prosecuting cases involving the violation of federal laws and investigates a wide variety of criminal conduct, even when the conduct arises in faraway places. Additionally, the office is known for pursuing cases involving the violation of state laws.

On January 3, Bankman-Fried entered a not guilty plea to all eight of the criminal accusations relating to the implosion of FTX. If found guilty, the FTX founder faces a total of 115 years in jail for his role in the collapse of the company.

A guilty plea was entered by Wang and Ellison one month ago in connection with the federal fraud charges that stem from their roles in the failure of the FTX exchange.