Disgraced Bankman-Fried Crypto Wallets Now Targeted By Federal Prosecutors

Key Points:

• Federal investigators are looking into a number of cryptocurrency transactions that web analysts have linked to Sam Bankman-Fried-related digital wallets.
• If Bankman-Fried is doing the transactions, prosecutors from the Southern District of New York (SDNY) are investigating whether he is merely shifting his own assets or cashing them out without permission, according to the article.
• Former CEO of the now-defunct cryptocurrency exchange FTX, Bankman-Fried, claimed in a tweet that he was not involved in the transactions.

According to Bloomberg News, citing a person familiar with the situation, federal prosecutors are looking into a number of cryptocurrency transactions that web analysts have connected to digital wallets linked to disgraced crypto tycoon Sam Bankman-Fried.

If Bankman-Fried is doing the transactions, prosecutors from the Southern District of New York (SDNY) are investigating whether he is merely shifting his own assets or cashing them out without permission, according to the article.

Blockchain experts have been monitoring the movement of funds over the past few days that appear to be tied to digital wallets connected to the former CEO of the FTX exchange and his shuttered hedge fund Alameda Research, with a total estimated value of more than $1 million by data tracker Arkham Intelligence. After being declared a billionaire earlier, Bankman-Fried claims he still has roughly $100,000 in his bank account.

Bankman-Fried stated he was not carrying out the transactions in a tweet on Friday.

Last week, Bankman-Fried was granted freedom on a $250 million bail. A $372 million worth of tokens was allegedly taken from the exchange just hours after FTX filed for bankruptcy on November 11, according to bankruptcy records.

As Coincu reported, the Securities Commission of The Bahamas has directed the transfer of all digital assets in FTX Digital Markets, the Bahamas unit of FTX, valued at more than $3.5 billion, to digital wallets controlled by the commission.

The Bahamas Securities Commission explained that based on information provided to the Commission by SBF about cyberattacks on the FTX Digital Markets Ltd (FTXDM) system, limited access by FTXDM employees to its AWS system name and other available information, the Commission has determined that digital assets under the custody or control of FTXDM already exist.

Coincu will continue to update the situation related to Sam Bankman-Fried, you can find out more information through this article.

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