News

The DOJ Is Investigating The FTX Hack After The Exchange Declared Bankruptcy

Key Points:

  • The DOJ has launched an investigation into the FTX hack, which swept $372 million following the hack of the leading exchange, as per reports by Bloomberg.
  • The actions could amount to a crime of computer fraud, which carries a maximum 10-year prison sentence.
  • Together with the Manhattan police who are in charge of SBF’s arrest in the Bahamas, the team from the DOJ’s National Cryptocurrency Enforcement is currently looking into the situation.
According to Bloomberg, federal prosecutors in the U.S. have opened an inquiry into the FTX hack that stole $372 million after the main exchange was compromised.

The hack began a few hours after FTX filed for Chapter 11 bankruptcy on November 11. It lasted through the early hours of November 12. Massive cryptocurrency transfers took place from the FTX and FTX US wallets.

On November 12, the day after the estate filed for bankruptcy, FTX’s new CEO, John J. Ray III, disclosed that unauthorized access had been made to some of the company’s assets.

The amount taken is a lot less than the alleged misuse of billions of dollars by Bankman-Fried while he was in charge of FTX.

According to a person familiar with the matter who wanted to remain anonymous because the investigations are still ongoing, the Department of Justice has opened a criminal investigation into the stolen assets that is independent of the fraud case against FTX co-founder Sam Bankman-Fried.

The individual said that part of the stolen money had been successfully frozen by US officials. The frozen assets, however, only make up a small portion of the total loot.

Together with the Manhattan police in charge of SBF’s arrest in the Bahamas, the DOJ’s National Cryptocurrency Enforcement team is currently looking into the situation.

It’s unclear if the intrusion was an inside operation, as Bankman-Fried claimed in interviews before his arrest, or the work of a shady hacker looking to take advantage of a failing business’s vulnerabilities. The actions could amount to a crime of computer fraud, which carries a maximum 10-year prison sentence.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

3 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

5 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

7 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

8 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

11 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

14 hours ago

This website uses cookies.