In the past, many fraudsters and scammers have managed to get past the regulatory authorities and never faced any legal action.
As the crypto industry is new, there are still many cracks left within the industry that need to be filled before it can be made a safe place.
Until then, scammers and fraudsters may continue taking advantage of that and continue looting innocent investors.
You will be surprised to know that with the latest developments involving FTX, it has been alleged that Sam Bankman-Fried was no more than a scammer.
The man with a net worth of over $25 billion until October 2022 is now facing legal charges. He has been stamped as a fraudster for his actions and how he ended up costing billions of dollars to investors and creditors.
The US DOJ is after SBF
It is being claimed that the regulatory authorities are not going to show any kind of mercy to SBF for his crimes in the crypto world.
There is a high possibility that the regulators and law enforcement authorities may want to set an example with SBF.
This is the reason why the regulators are opening one investigation case against SBF after another.
However, this is not being done out of a grudge as the list of cases and charges against him is constantly growing larger.
As the cases are going on against Sam Bankman-Fried (SBF), he has caught the attention of one major regulatory authority. Even the Department of Justice (DoJ) of the United States is now after him.
The DoJ is investigating a Particular Case
While other investigations are still ongoing against the FTX CEO, the DoJ is running its own investigation against him.
Their investigation involves a case that alleges the possibility of SBF having siphoned funds outside of the United States.
The DoJ has reasons to believe that SBF carried out the task of siphoning funds out of the country. It has been alleged that the funds were transferred days before the crash of the FTX exchange took place.
According to the DoJ, the funds being siphoned out of the country prior to the platform’s crash and then filing for bankruptcy, lead to potential fraud.
If the regulator does establish that the funds were transferred prior to the exchange’s demise, things could get even worse for SBF.
He will end up facing an even scarier sentence and severe charges if he is found guilty in the investigation.
Funds Transferred to the Bahamas
It was on November 11 when the FTX exchange was forced to file bankruptcy because it faced major financial issues.
Now the investigation being run by the DoJ is to establish if SBF was involved in the transferring of the funds outside of the United States.
It is claimed that the funds were transferred to the Bahamas. Therefore, the DoJ has to carry out a thorough investigation and leave no evidence behind.
The DoJ is in contact with the FTX Case Overseers
The DoJ has already expedited the process of gathering information that they need against the FTX exchange to complete their investigation.
One of the inside sources remaining anonymous has claimed that the Department of Justice is already in touch with the overseers responsible for monitoring the case.
The regulator is trying to gather as much information as possible about the FTX exchange. They do not want to leave any piece of information behind while they investigate the exchange.
Their utmost priority now is to gather all the possible information that is going to help them expedite their investigation. They want to get to the bottom of the matter and may soon come up with an update.
The regulator is going to bring the Alameda Research platform into their investigation so they can collect useful information from there as well.
If the gathered data comes out against SBF, he will end up facing many years in prison for his running a scam.
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