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The US is investigating a possible fraud by FTX founder Sam Bankman-Fried

The Justice Department is investigating a possible fraud by Sam Bankman-Fried. The FTX fiasco isn’t done talking.

US federal prosecutors are reportedly building a fraud case against the founder, former CEO of FTP extensionSam Bankman-Fried. Bloomberg reports that Justice Department officials met with the cryptocurrency exchange’s bankruptcy team this week to further discuss the documents investigators are seeking from the company.

The Justice Department investigates a possible fraud by Sam Bankman-Fried

Among those attending this meeting were prosecutors from the Southern District of New York, assistant attorney Roos, agents of the Federal Bureau of Investigation as well as FTX’s lawyers. Roos has been particularly involved in the lawsuits against Nikola founder Trevor Milton, who was found guilty of deceiving investors a few months ago. If we are to believe Bloombergpotential charges were not discussed at this meeting.

The Justice Department is examining “closely” whether FTX improperly transferred hundreds of millions of dollars around the time the company filed for bankruptcy on Nov. 11. The Justice Department also wants to know if the exchange violated the law when it transferred funds to its Alameda Research subsidiary.

The FTX fiasco isn’t done talking

In his recent interview for the New York Times, Sam Bankman-Fried denied misuse of client funds. “Clearly, I made a lot of mistakes. There are things that I would give everything I have to do again,” he said. “I have never attempted to commit any fraud against anyone.” He will testify before the House Committee on Financial Services in the coming days a jury that will also include the testimony of the current CEO of FTX, John J. Ray III. The latter accused Sam Bankman-Fried of making “inconsistent and misleading public statements” regarding FTX.

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