- US federal prosecutors have launched an investigation into FTX founder SBF for market manipulation, according to NYT.
- The investigation is in its early stages and it is unclear if prosecutors have found any wrongdoing.
- FTX filed for Chapter 11 bankruptcy on November 11 after an intense week-long liquidity squeeze.
US federal prosecutors are investigating FTX founder Sam Bankman-Fried for manipulating two cryptocurrencies last spring, on New York Times reported Wednesday, citing two people with knowledge of the matter.
They have launched an investigation to determine whether Bankman-Fried controlled the prices of TerraUSD and Luna for the benefit of FTX and its affiliated trading firm Alameda Research, according to the Times.
The investigation is in its early stages and it is unclear if prosecutors have determined any wrongdoing on the part of the founder of the cryptocurrency exchange.
The problems surrounding Bankman-Fried have only worsened after the collapse of FTX. The exchange filed for Chapter 11 bankruptcy on November 11 after it failed to secure a bailout following a week-long intense liquidity squeeze. Bankman-Fried resigned as CEO the same day. Reuters informed at the time FTX had transferred billions of dollars of client funds to Bankman-Fried's Alameda Research.
Bankman Fried told the Times in a statement on Wednesday that he was "not aware of any market manipulation and certainly never intended to participate in market manipulation."
"To the best of my knowledge, all transactions were for investment or hedging," he added, according to the Times.
Bankman-Fried and a representative for the US Attorney for the Southern District of New York did not immediately respond to Insider's requests for comment sent outside of regular business hours.
