FTX Task Force Launched
By Lesia Dubenko 407 11 Jan 2023
The United States Attorney’s Office for the Southern District of New York aims to recover missing FTX funds.
In a new statement, U.S. Attorney Damian Williams, the federal prosecutor in the FTX case involving founder Sam Bankman-Fried, – who is charged with wire and securities fraud, conspiracy to commit wire and securities fraud, money laundering, and violation of campaign finance laws, – unveiled a new task force.
Its goal is to trace and recover the missing FTX customer funds.
“The Southern District of New York is working around the clock to respond to the implosion of FTX,” said Williams in the statement. “It’s an all-hands-on-deck-moment. We are launching the SDNY FTX Task Force to ensure that this urgent work continues, powered by all of SDNY’s resources and expertise until justice is done.”
According to the SDNY, the team will comprise senior prosecutors from its securities and commodities fraud, public corruption, money laundering, and transnational crime enterprise units. They will be responsible for the “investigation and prosecution of matters related to the FTX collapse.”
The latest initiative is complemented by FTX new management’s hiring of AlixPartners, which is poised to carry out “asset-tracing” for FTX’s missing digital assets.
FTX executives are also trying to win back the investor’s trust and retrieve hundreds of millions of dollars in cash. They reported that they found more than $1 billion in assets scattered worldwide.
Previously, Gagarin News reported that the US lawmakers held a second hearing, during which they lambasted the former FTX CEO Sam Bankman-Fried and the business practices of the firm.
Among the most peculiar practices was that a multi-billion company used Quickbooks, which caters to small and medium-sized businesses, to do its accounting.