The Justice Department is looking into the turmoil surrounding Sam Bankman-Fried’s FTX.com and the liquidity crisis that has pushed the firm to the brink, according to a person familiar with the matter.
(Bloomberg) — The Justice Department is looking into the turmoil surrounding Sam Bankman-Fried’s FTX.com and the liquidity crisis that has pushed the firm to the brink, according to a person familiar with the matter.
Officials from the Justice Department are working with Securities and Exchange Commission attorneys probing the matter, said the person. Representatives for the SEC and Justice Department declined to comment. A representative for FTX didn’t immediately return a request for comment on the Justice Department interest, which was first reported by the Wall Street Journal.
The scrutiny adds to mounting legal headaches in Washington for Bankman-Fried. The SEC and the Commodity Futures Trading Commission are investigating whether FTX.com mishandled customer funds, and the regulators are looking into the firm’s relationships with other parts of his crypto empire.
The initiation of inquiries does not necessarily mean that anyone will be accused of wrongdoing.
–With assistance from Yueqi Yang, Olga Kharif, Chris Strohm and Ava Benny-Morrison.
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