FTX Task Force To Recover Victims’ Assets Was Formed Immediately After Sam Denied

Key Points:

• The United States Attorney’s Office in the District of Manhattan has established an FTX task force to recover the assets of FTX victims.
• The action came after the SBF refused to plead guilty in court on January 3.
• The task force will include prosecutors from securities and commodities fraud, public corruption, money laundering, and transnational criminal enterprise divisions.

The U.S. Attorney’s Office in Manhattan said it had established the FTX Task Force to track and recover the assets of victims following the collapse of the crypto exchange and to deal with the investigations and prosecutions involving the company and other entities, according to CNBC.

“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,”

Manhattan U.S. Attorney Damian Williams said in a statement.

The announcement came after FTX founder and former CEO Sam Bankman-Fried appeared in U.S. District Court in Manhattan, and he declined to accept criminal charges of fraud causing fraud. U.S. prosecutors previously brought forward FTX’s collapse.

“The Southern District of New York is working around the clock to respond to the implosion of FTX (…). It is an all-hands-on-deck moment,”

He said

The task force will include prosecutors from securities and commodities fraud, public corruption, money laundering, and transnational criminal enterprise divisions. Williams’ senior deputy, Andrea Griswold, is leading the task force.

The Securities and Exchange Commission has estimated that customers have lost more than $8 billion to fraud at FTX and Bankman-Fried’s hedge fund, Alameda Research.

When FTX filed for Chapter 11 bankruptcy protection in November, it claimed to have more than 100,000 creditors and liabilities between $10 billion and $50 billion, compared with assets in the same range.

Sam Bankman-Fired is free but under house arrest at his parent’s residence on a $250 million personal bond.

In a court hearing yesterday, a U.S. court approved an amendment to SBF’s bail agreement that barred him from receiving or transferring money related to FTX or Alameda Research as a new bail condition.

The immediate reason for the modification was that approximately $1.7 million worth of tokens in the wallet linked to Alameda were sold on the open market a few days after Sam was released on bail.

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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