Prosecutors from the United States attorney’s office in the New York borough of Manhattan have begun investigating the crash of cryptocurrency exchange FTX.
According to a November 14 Reuters story, a source with knowledge of the investigations said New York authorities were investigating the collapse of one of the largest cryptocurrency exchanges after FTX filed for bankruptcy on November 11. The note followed news that the California State Department of Financial Protection and Innovation announced that it would investigate the “apparent fiasco” at FTX.
The current drama surrounding FTX may be turning to the regulatory and legal implications of a major cryptocurrency exchange going bankrupt. Rumors have circulated on social media platforms and in the media regarding the company, as well as the now former CEO, Sam Bankman-Fried.
So either the collapse of FTX and SBF’s was — checks notes — an inevitable result of a speculative bubble managed by 20-something douchebro tech kids — or a sophisticated global money laundering operation masterminded by — checks notes — Joe Biden.
Occam’s Razor, kids.
—Rick Wilson (@TheRickWilson) November 14, 2022
Cointelegraph reported that as of Nov. 12, the FTX co-founder was “under supervision” in the Bahamas, where many of the FTX staff were based. The country’s securities regulator also ordered a freeze on FTX’s assets on Nov. 10, and the exchange was reportedly under investigation for criminal misconduct in the wake of its insolvency.
Bankman-Fried, aka SBF, has lost his billionaire status in the wake of the controversy, with many headlines suggesting that the former FTX CEO’s net worth may have fallen by more than 90%. Amid the exchange’s liquidity crisis and bankruptcy filing, SBF apologized more than once on Twitter, saying it “should have done a better job” of providing transparency about the situation.
Cointelegraph contacted the Manhattan District Attorney’s Office, but did not hear back at the time of publishing this story.
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