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US Probes FTX Founder for Fraud, Examines Cash Flows to Bahamas

  • Scope of inquiry includes transfers around time of bankruptcy
  • It’s part of broad effort by prosecutors to track client funds
Bloomberg business news
Bankman-Fried Says He’s Open to House Testimony

US prosecutors, laying the groundwork for a potential fraud case against Sam Bankman-Fried and others involved in the collapse of cryptocurrency giant FTX, are scrutinizing how funds held by the exchange operator moved outside the US as it was hurtling toward bankruptcy, according to a person familiar with the matter.

Prosecutors are closely examining whether hundreds of millions of dollars were improperly transferred to the Bahamas around the time of FTX’s Nov. 11 bankruptcy filing in Delaware, the person said, asking not to be named without authorization to discuss the case publicly.