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FTX founder Sam Bankman-Fried is being investigated for crypto market manipulation: NYT

Sam Bankman-Fried
Sam Bankman-Fried resigned as CEO of FTX on November 11.

om Williams/CQ-Roll Call Inc via Getty Images

  • US federal prosecutors have launched a probe into FTX founder SBF for market manipulation, per NYT.

  • The probe is in its early stages and it's unclear if prosecutors have determined 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 this past Spring, the New York Times reported Wednesday, citing two people with knowledge of the matter.

They have launched a probe to determine whether Bankman-Fried controlled the prices of TerraUSD and Luna to the advantage of FTX and its affiliated trading firm Alameda Research, according to the Times.

The investigation is in its early stages, and it's unclear if prosecutors have determined any wrongdoing by the crypto exchange founder.

Troubles surrounding Bankman-Fried have only compounded after the collapse of FTX. The exchange filed for Chapter 11 bankruptcy on November 11 after it failed to secure a rescue following an intense week-long liquidity squeeze. Bankman-Fried resigned as CEO on the same day. Reuters reported 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 he was "not aware of any market manipulation and certainly never intended to engage in market manipulation."

"To the best of my knowledge, all transactions were for investment or for hedging," he added, per the Times.

Bankman-Fried and a representative of the US attorney for the Southern District of New York did not immediately respond to Insider's requests for comment sent outside regular business hours.

Read the original article on Business Insider