NYT: FTX Founder SBF Under Investigation for Crypto Market Manipulation

  • The NYT reports that US federal prosecutors have launched an investigation into SBF, founder of FTX, for market manipulation.
  • The probe is still in its early stages, and it’s not clear if any wrongdoing has been found.
  • After a severe week-long liquidity squeeze, FTX filed Chapter 11 bankruptcy on November 11.

US federal prosecutors are investigating Sam Bankman-Fried, founder of FTX, for manipulating two cryptocurrencies in the Spring of this year. New York TimesTwo people with knowledge of the matter were quoted in the report Wednesday

They launched an investigation into whether Bankman-Fried had controlled the prices. TerraUSD and LunaAccording to the Times, FTX is a trading platform that works to the benefit of Alameda Research, an affiliated trading firm.

The investigation is still in its infancy and it’s not clear if prosecutors have found any wrongdoing on the part of the founder of crypto exchange.

The troubles surrounding Bankman-Fried only got worse after the collapse in FTX. The exchange filed for Chapter 11 bankruptcyIt failed to secure a rescue after enduring a severe week-long liquidity squeeze. On the same day, Bankman-Fried was forced to resign as CEO. ReutersReport at the time FTX had transferred billions of dollars of client funds to Bankman-Fried’s Alameda Research.

Bankman Fried said Wednesday that he was unaware of any market manipulation and had never intended market manipulation.

According to the Times, he said that all transactions were intended for investment or hedge purposes.

Insider received no response from Bankman-Fried or a representative of US attorney for Southern District of New York to Insider’s requests outside of regular business hours.

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