Authorities around the world are racing against time to bring justice to the millions of people affected by the financial frauds committed by FTX CEO Sam Bankman-Fried. As part of ongoing investigations, lawyers representing the Bahamas Securities and Exchange Commission are seeking to access FTX’s database of international client information.
These attorneys filed an urgent motion with a Delaware bankruptcy judge requesting access to FTX’s client database to aid their ongoing investigations. The motion highlighted previous failed attempts to access the database of the defunct cryptocurrency exchange.. As a result, the lawyers claimed that FTX employees and lawyers prevented authorities from obtaining critical financial information.
Apparently, the database in question is stored in databases of Amazon Web Services (AWS) and Google Cloud Portal, which include personal information such as wallet addresses, customer balances, records of deposits and withdrawals, operations and accounting data. According to the lawyers, the bankruptcy proceedings of the United States “will not suffer any damage or difficulty if this discharge is granted.”
While AWS was used to store customer information, FTX used Google services as an analysis platform for the data of users residing outside the United States. According to the CNBC presentation:
“While the Joint Provisional Liquidators are happy to enter into dialogue with the US Debtors, their refusal to immediately restore access has frustrated the Joint Provisional Liquidators’ ability to carry out their duties under Bahamian law. and has put FTX Digital’s assets at risk of dissipation.”
The latest ripple effect of the FTX fraud was suffered by news outlet The Block, which had not disclosed the funding from Alameda Research. The Block’s CEO, Mike McCaffrey, resigned after failing to disclose a $27 million loan from FTX’s sister company, Alameda Research.
On Dec. 7, FTX’s new management team reportedly hired a team of financial forensics investigators to track down missing client funds in excess of $450 million in cryptocurrency.
As Cointelegraph previously reported, the forensic firm is tasked with carrying out “asset tracing” to identify and recover missing digital assets and will complement the restructuring work being carried out by FTX.
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