Federal prosecutors are investigating an alleged cybercrime that drained more than $370 million from crypto exchange FTX hours after it filed for bankruptcy, Bloomberg News reported on Tuesday citing a person familiar with the case.
The criminal probe into the stolen assets, launched by the Department of Justice is separate from fraud case against FTX co-founder Sam Bankman-Fried, the report added.
A spokesperson for the Manhattan U.S. attorney's office said he could not confirm or comment on the issue, while DoJ and FTX did not immediately respond to a Reuters request for comment.
U.S. Attorney Damian Williams speaks during a news conference about the criminal charges filed against FTX founder Sam Bankman-Fried, Tuesday, Dec. 13, 2022, in New York. The U.S. Securities and Exchange Commission has charged the former CEO of faile (AP Photo/Julia Nikhinson / AP Newsroom)
FTX filed for U.S. bankruptcy last month and Bankman-Fried stepped down as chief executive, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
The U.S. Department of Justice accused Bankman-Fried of causing billions of dollars of losses related to FTX, which a U.S. prosecutor called a "fraud of epic proportions."
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FTX founder Sam Bankman-Fried leaves following his arraignment in New York City on December 22, 2022. – New York judge Gabriel Gorenstein ordered Bankman-Fried be released on $250 million bail while he awaits trial on criminal fraud charges over the spectacular collapse of his crypto exchange. (Photo by Ed JONES / AFP) (Photo by ED JONES/AFP via Getty Images) | Getty Images
Bankman-Fried founded FTX in 2019 and rode a boom in the values of bitcoin and other digital assets to become a billionaire several times over as well as an influential donor to U.S. political campaigns.
The FTX collapse has fanned fears about the future of the crypto industry after the beleaguered exchange outlined a "severe liquidity crisis".