Federal prosecutors are investigating Sam Bankman-Fried, the former CEO of FTX, over a $400 million investment he made in the hedge fund Modulo Capital.
Prosecutors suspect that Bankman-Fried invested FTX customer funds into the hedge fund, which is located on the same compound as FTX, while Alameda Research was suffering from the collapse of other crypto firms.
The Bahamian prosecutor revealed their knowledge of the hedge fund’s existence during Bankman-Fried’s bail hearing in Nassau, Bahamas, before the former FTX CEO was extradited to the US.
Bankman-Fried is facing eight criminal charges in the United States, including wire fraud, conspiracy to commit money laundering, and political campaign finance violations, and the SEC has charged him for abusing $1.8 million in investor funds.
The prosecutors are also examining three Binance accounts under Bankman-Fried’s name and recently seized $50 million from his account at Farmington State Bank.
Nola Robert is considered a thought leader in crypto industry, and her work is widely read and respected by industry professionals, investors, and enthusiasts alike. Nola is also known for her ability to explain complex topics in an easy-to-understand manner, making them accessible to a wider audience.
Related posts
BlockDAG Spearheads May 2024’s Top 4 Crypto Presales with $23.9 Million Raised
Azuro and Chiliz Working Together to Boost Adoption of Onchain Sport Prediction Markets
Introducing StarCheck AML: Prevent Frozen Funds
