A criminal investigation into the fraud committed by the FTX exchange and its CEO, Sam Bankman-Fried, could be much more complicated than lawmakers expected.
A prosecutor for the United States District Court for the Southern District of New York was quoted as saying the case was “extremely expansive” and could exhaust court resources.
according to Charles Gasparino, a senior correspondent for FOX Business, said to the layers involved in the FTX investigation that prosecutors suspected bribery, campaign finance violations, market manipulation, theft, and possible fraud. said.
Gasparino did not disclose his sources and did not provide further details about the status of the investigation.
Nicknamed “mother coat, the United States District Court for the Southern District of New York, is considered the federal court of excellence in the United States. The court was established in the late 18th century and is home to the country’s most important terrorism and white-collar crime trials. .
If Gasparino’s sources are correct, the FTX investigation and ensuing trial could be the most complicated endeavor the court has ever seen.
Many believe that Sam Bankman-Fried’s campaign donation violations may be taking up a large portion of the court’s resources.
Throughout 2022, SBF donated About $40 million to various candidates and committees. Also, while almost all of the donations were to Democrats or Democratic-backed causes, the SBF claimed an equal amount was donated to Republicans “in a manner not appearing on federal campaign finance reports.”
However, court filings reveal that SBF has been charged with illegally donating “tens of millions of dollars” to US candidates and campaigns. Said The donation was disguised to be from a wealthy co-conspirator, but was in fact funded by Alameda Research with stolen client money.
Lawyers and prosecutors involved in the FTX investigation have not confirmed these rumors.SDNY has remained silent on the matter and no other sources have been disclosed. Nonetheless, some point to her reported DCG investigation as a clue in support of the court’s exhausted resources.
The SEC and the US District Court for the Eastern District of New York are reportedly “reviewing the transfer” between DCG and Genesis.bloomberg Quote According to a person familiar with the matter, the prosecution has begun questioning and requesting materials. However, neither DCG, Genesis, nor DCG founder Barry Silbert has been charged.
Let EDNY investigate market players as big as DCG It has led many to believe that the rumor that SDNY is running out of resources on FTX could be true.