The collapse of cryptocurrency exchange FTX is now the subject of an investigation by federal prosecutors in New York, sources familiar with the matter tell ABC News.
The logo of FTX is seen at the entrance of the FTX Arena in Miami, Nov. 12, 2022.FTX is now the subject of an investigation by federal prosecutors in New York, sources familiar with the matter told ABC News.
At issue, the sources said, is whether FTX violated securities laws when it reportedly gave customer funds to Alameda Research, the trading firm of FTX founder Sam Bankman-Fried.A spokesman for the U.S. Attorney’s Office for the Southern District of New York declined to comment. Earlier this month, concerns of financial instability at FTX -- a top platform where users buy and sell crypto -- triggered a wave of customer withdrawals totaling billions of dollars. But FTX lacked sufficient funds to pay sellers, instead imposing a halt on withdrawals altogether.
Bankman-Fried, 30, a prominent crypto entrepreneur and the CEO of FTX, resigned on Friday, the announcement added.Marco Bello/Reuters
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