United States Justice Department Wades Into $370m+ FTX Crypto Theft

QUICK TAKE:

• More troubles for SBF/FTX as US DoJ commences probe into stolen assets.
• The possibility of it being an inside job is not ruled out.

The controversy around the FTX debacle is yet to fizzle out. More and more incriminating affairs are being thrown up and that leaves much to be desired, in the unfolding event around the former boss of the company, Samuel Bankman-Fried (SBF).

At a time when the cryptocurrency guru is under house arrest in his California family home, the US Department of Justice (DoJ) is looking into another case that may directly or indirectly dent his already battered image even further. Reliable information has it that within hours after FTX filed for Chapter 11 bankruptcy on Nov 11, a humongous amount of Crypto assets in the threshold of $370 million – $400 million disappeared from the exchange’s wallets. The DoJ must get to the bottom of the mysterious outflows which have already been described by many as a hack if it must make headway in the ongoing trial of the erstwhile CEO. It needs to determine the factors that enabled this – if there was a possibility of complicity from within.

Two Different Movements of Assets Clarified
The issue here is quite different from another one involving a transfer of $400 million to the Bahamas Securities Commission, as a sort of contingency plan at about the same time. The two simultaneous movements of assets created the impression in the minds of media observers, and crypto news enthusiasts, that it was one and the same event but the new CEO of FTX, John J. Ray debunked this, stating that they were separate incidents.

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