DOJ Investigating $372 Million in Missing FTX Funds, Reports Say

FTX Investigating Possible Hack, Reports Say

The US Department of Justice has launched a criminal investigation into $372 million in stolen FTX assets, according to a new report from Bloomberg

The probe, which is independent of the fraud case against FTX co-founder Sam Bankman-Fried, centers on more than $370 million that went missing mere hours after the cryptocurrency exchange declared bankruptcy, but has not yet determined whether it was an inside job or the work of hackers, according to a person familiar with the case, Bloomberg reports. US authorities have so far managed to freeze only a small portion of the stolen funds, the report says.

The investigation is being run by the National Cryptocurrency Enforcement Team, which was established last year to focus on cyber crime and illicit cryptocurrency activities. NCET is working with federal prosecutors in Manhattan who are running the criminal investigation into Bankman-Fried, who is accused of mismanaging billions in customer funds to prop up FTX, and faces eight counts of conspiracy and criminal activity related to wire fraud, commodities fraud, securities fraud, money laundering and violation of campaign finance laws.

In the separate fraud case against Bankman-Fried, more court documents released Tuesday reportedly show that the former CEO, who was recently released on $250 million bail, said he and FTX co-founder Gary Wang borrowed more than $546 million in funds from Alameda Research, a trading firm started by Bankman-Fried, to purchase shares of Robinhood, a fee-free trading app. 

The Justice Department didn’t immediately respond to a request for comment.

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