While many cryptocurrency scammers have managed to slip under the radar in the past, the same is not true of FTX CEO Sam Bankman-Fried (SBF). In parallel with the ongoing scrutiny related to FTX frauds, the US Department of Justice (DOJ) is investigating a possible fraud involving SBF in diverting funds abroad just days before FTX filed for bankruptcy.
According to a Bloomberg report, the federal investigation aims to examine SBF’s involvement in the improper transfer of funds from FTX to the Bahamas when the defunct cryptocurrency exchange filed for bankruptcy on November 11.
The anonymous tipster further revealed that DOJ officials met with FTX’s court-appointed monitors to discuss the scope of information they need for further investigation.. The DOJ also plans to investigate whether SBF illegally transferred funds from FTX to Alameda Research.
Given SBF’s strong connections to US politics, the fraudster has yet to be charged with any crime and continues to participate in Twitter discussions from undisclosed locations. On Dec. 9, SBF accused Binance CEO Changpeng “CZ” Zhao of lying and backing out at the last minute of a deal that could have saved FTX.
According to CZ, SBF was “unhinged” by the exchange’s withdrawal, a claim that prompted an online response from the former CEO of FTX.
According to Financial Times, a failed $100 million deal allowed pop star Taylor Swift to walk away without any relationship to FTX.
Taylor was in talks with FTX for an endorsement deal, which would have made her one of the faces representing the failed cryptocurrency exchange. Although at first the musician refrained from signing the agreement because of how expensive it was, the bankruptcy of FTX definitively closed the discussion.
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