The special task force's objective is to locate and retrieve the assets of victims of the exchange's collapse.
This came as the disgraced FTX founder appeared in Manhattan District Court to enter a not-guilty plea in his criminal case.
Sam Bankmna-Fried’s trial has been scheduled for October 2, 2023, later this year.
Office announced the establishment of an FTX Task Force, which will focus only on the company's investigations and charges. The special task force's objective is to locate and retrieve the assets of victims of the exchange's collapse.
This came as the disgraced FTX founder appeared in Manhattan District Court to enter a not-guilty plea in his criminal case. Sam Bankmna-Fried’s trial has been scheduled for October 2, 2023, later this year. SBF has been charged with financial fraud and multiple financial charges and faces up to 115 years in jail.
SBF is currently under house arrest at his parent's house with a $250 million bail bond. In addition to SBF, FTX co-founder Gary Wang and Caroline Ellison, the former CEO of Alameda, face additional charges. Manhattan U.S. Attorney Damian Williams stated in a statement on Tuesday:
“The Southern District of New York is responding to the implosion of FTX around the clock. We are establishing the SDNY FTX Task Force to guarantee that this crucial work is carried out with all of SDNY's resources and expertise until justice is served.”
The Manhattan District Court task force will include attorneys from the divisions of Money Laundering, Securities and Commodities Fraud, Transnational Criminal Enterprises, and Public Corruption. This task force will be led by Andrea Griswold, Williams' senior deputy.
The Securities and Exchange Commission (SEC) estimates that customers have lost $8 billion as a result of the collapse of FTX and Alameda Research.
Bankman-Fried’s hedge fund Alameda Research has a large stake in FTX's native crypto FTT tokens. They used this as security to make billions of dollars in loans. As the situation became public, Binance announced that they will sell their share in FTT, resulting in a significant outflow of capital. FTX declared bankruptcy in mid-November 2022.
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