Federal law enforcement officials in the US are looking into possible market manipulation by FTX creator Sam Bankman-Fried that caused the crash of two cryptocurrencies. The New York Times writes that the inquiry is still in its early stages. After experiencing a liquidity problem that caused at least $1 billion in lost client cash, the cryptocurrency exchange declared bankruptcy last month.
FTX’s senior executives, including Bankman-Fried, are being looked at by regulators throughout the world, notably in the Bahamas, where the company is based, and in the US.
Federal prosecutors in New York are requesting information on any interactions that these companies may have had with Bankman-Fried and the leadership of the crypto business.