The DOJ Calls on Victims of Bankman-Fried Fraud to Come Forward
The US Department of Justice (DOJ) has called on victims of former FTX CEO Sam Bankman-Fried's fraud to come forward. The former FTX executive has been charged with "defrauding customers of FTX.com, investors in FTX.com, and lenders to Alameda Research," the Justice Department said.
The DOJ Reaches Out to Victims On its Website
The
US Department of Justice (DOJ) reached out to victims of Sam Bankman-Fried's fraud on its website on Friday, explaining their rights and asking them to come
forward. Bankman-Fried co-founded FTX and was its CEO when the crypto
exchange filed for bankruptcy in November last year.
The
DOJ wrote:
"If
you believe that you may have been a victim of fraud by Samuel Bankman-Fried,
a/k/a "SBF," please contact the victim/witness coordinator at the
United States Attorney’s Office... for assistance in verifying whether you are
a victim in this case."
The
Justice Department explained that on December 13, 2022, "an eight-count
indictment was unsealed charging Samuel
Bankman-Fried with defrauding customers of FTX.com, investors in FTX.com, and
lenders to Alameda Research."
The
DOJ said, "Bankman-Fried is charged with wire fraud, conspiracy to commit
wire fraud, conspiracy to commit commodities fraud, conspiracy to commit
securities fraud, conspiracy to commit money laundering, and conspiracy to
defraud the United States and violate the campaign finance laws."
Prosecutors
Seek Permission to Notify Victims
Prosecutors
are required by federal law to contact possible crime victims to inform them of
their rights. However, in court papers filed on Friday, federal prosecutors in
Manhattan asked US District Judge Lewis A. Kaplan, assigned to the SBF case,
for permission to use a website to notify victims, rather than contacting each
individually. They claimed that the collapsed crypto exchange FTX could owe
money to more than one million people, making it "impracticable" to
contact them.
Bankman-Fried,
who is currently at his parent’s house on a USD 250 billion bond, has pleaded
not guilty to fraud charges. Meanwhile, the DOJ has moved to seize shares
of Robinhood Markets, worth about USD 465 million, tied to the former FTX CEO.
What
is your take on the DOJ asking Sam Bankman-Fried’s fraud victims to come
forward? Please post your comments.
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