Although many fraudsters using crypto currencies were able to get by in the past, this is not the case for Sam Bankman-Fried (FTX CEO). Parallel to ongoing scrutiny of FTX frauds the United States Department of Justice is reportedly investigating a possible fraud in which SBF siphoned funds offshore just days prior to FTX filing for bankruptcy.
According to a Bloomberg report, the federal investigation aims to examine SBF’s involvement in improperly transferring FTX funds to the Bahamas as the defunct crypto exchange filed for bankruptcy on Nov. 11.
The anonymous informant further revealed that DOJ officials met with FTX’s court-appointed overseers to discuss the scope of the information they need for further investigation. DOJ will also investigate whether SBF transferred FTX money to Alameda Research.
Given SBF’s strong connections to United States politics, the fraudster has not yet been charged with any crimes and continues to participate in Twitter discussions from undisclosed locations. On Dec. 9, SBF accused Binance CEO Changpeng “CZ” Zhao of lying and backing out last minute from a deal that could save FTX.
According to CZ, SBF was “unhinged” at the exchange pulling out — a claim that prompted an online response from the former FTX CEO.
Related: FTX reportedly has 3 more months to halt all operations in Japan
Financial Times claims that Taylor Swift walked away from FTX following a failed $100 million deal.
Taylor was in talks with FTX regarding a sponsorship deal. It would have seen Taylor as one of the faces representing the failed cryptocurrency exchanges. While the musician initially refrained from signing the deal as it was expensive, FTX’s bankruptcy shut down the discussion permanently.