Dec 7, 2022
BREAKING: Disgraced crypto bro Sam Bankman-Fried under criminal investigation by DOJ
Sam Bankman-Fried, the disgraced former CEO of the collapsing cryptocurrency company FTX, is being criminally investigated by the Justice Department.
Joshua Young
Youngsville North Carolina
Dec 7, 2022
Sam Bankman-Fried, the disgraced former CEO of the collapsing cryptocurrency company FTX, is being investigated by the Justice Department for potentially manipulating the market in a way that led two interrelated cryptocurrency companies to collapse in a chain that eventually led to his own company's downfall.
The New York Times reports that Bankman-Fried manipulated the currencies of two crypto companies, TerraUSD and Luna, in order to benefit FTX and Alameda Research, which was run by Caroline Ellison, who was in an on-again, off-again relationship with Bankman-Fried.
The investigation into the two companies is part of a deeper look into how $8 billion of FTX customer funds inexplicably vanished in November. At the same time, Bankman-Fried had a personal net worth of around $16 billion but that reportedly has diminished by 94 percent and he resigned from his position on November 11.
The Securities and Exchange Commission and Federal authorities have also been investigating if FTX broke the law when Bankman-Fried transferred money from FTX to Alameda.
TerraUSD was known as a stablecoin, a term usually in reference to a crypto being backed by the US dollar. But TerraUSD's stability was rooted not in the dollar, but in a value based out of another digital coin called Luna. Traders within the crypto ecosystem could mint the coins and it would affect their value.
If the price of TerraUSD would fall, traders could create more Luna to take advantage of the difference. Authorities are looking into Bankman-Fried as taking advantage of this dynamic.
Earlier today, it was revealed Bankman-Fried had not been subpoenaed to testify in Congress before Maxine Waters and the House Financial Services Committee. Waters had invited him to participate in a December 13 hearing to discuss his company's implosion, however she has since made it clear that no subpoena had been issued.
more
https://thepostmillennial.com/breaking-disgraced-crypto-bro-sam-bankman-fried-under-criminal-investigation-by-doj
