While many cryptocurrency scammers were able to avoid identification in the past, FTX CEO Sam Bankman-Fried is not one of them (SBF). The United States Department of Justice (DOJ) is apparently looking into a possible scam that involves SBF siphoning money abroad just days before FTX filed for bankruptcy, running parallel to the existing investigation into FTX frauds.

According to a Bloomberg report, the federal investigation, aims to investigate SBF's role in unlawfully transferring FTX funds to the Bahamas after the defunct cryptocurrency exchange filed for bankruptcy on November 11.

The unnamed source also disclosed that DOJ representatives spoke with FTX's court-appointed monitors about the breadth of the data they require for further inquiry. Additionally, DOJ intends to look into any unauthorized transfers of FTX cash to Alameda Research by SBF.

Given SBF's strong connections to US politics, he has not yet been charged with a crime and that he is still active on Twitter from unidentified locations. On December 9, SBF charged Binance CEO Changpeng "CZ" Zhao with lying and abruptly pulling out of a contract that would have saved FTX.

Source: Twitter

CZ claimed that SBF was "unhinged" as a result of the exchange quitting, and the previous CEO of FTX responded to this allegation online.

Taylor Swift was negotiating a sponsorship deal with FTX that would have made her one of the faces of the failed cryptocurrency exchanges. The musician initially held off signing the contract because it was too expensive, but FTX's bankruptcy ended all further discussion.

Dec 10, 2022
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