FTX founder Bankman-Fried going through market rigging probe: Report

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Investigation is targeted on whether or not Sam Bankman-Fried manipulated the marketplace for two cryptocurrencies, the New York Times says.

FTX founder Sam Bankman-Fried is being investigated by authorities within the United States to find out if he manipulated the marketplace for two cryptocurrencies resulting in their collapse and the implosion of his personal cryptocurrency alternate, in keeping with a New York Times report.

US federal prosecutors are wanting into whether or not Bankman-Fried managed the costs of TerraUsd and Luna, two interlinked digital currencies, to profit his firms FTX and Alameda Research, the newspaper reported on Wednesday.

The report, which cited two unnamed folks with data of the matter, stated the investigation is in its early levels and it’s not clear if prosecutors have concluded that Bankman-Fried did something incorrect.

The Reuters information company stated a spokesperson for the Manhattan US Attorney’s Office didn’t reply to a request for remark.

FTX, which was valued at $32bn at its peak, filed for chapter safety final month after the collapse of an acquisition deal involving rival alternate Binance prompted billions in withdrawals from clients.

The collapse of the cryptocurrency alternate despatched shockwaves by means of the crypto sector, triggering 1000’s of layoffs at crypto firms and the chapter of crypto lender BlockFi.

Bankman-Fried, who as soon as ranked because the world’s second-richest millennial after Mark Zuckerberg, final week denied aspiring to commit fraud however apologised for making a “lot of mistakes” in his dealing with of the cryptocurrency alternate.

“I didn’t ever try to commit fraud on anyone,” Bankman-Fried informed a convention hosted by CNBC and The New York Times.

Bankman-Fried on Sunday stated he would testify earlier than the US Congress about FTX’s collapse after he “finished learning and reviewing” the occasions that led to its implosion.