FTX Task Force Launched, Will FTX Customers Get Their Lost Funds?
While the entire crypto space is awaiting justice in the FTX case, the company’s founder and former CEO Sam Bankman-Fried have pleaded not guilty to the charges of deceiving his investors. This statement was given before Manhattan federal court on January 3, 2023.
Banman-Fried has denied all the charges which accuse him of defrauding his FTX customers and using it for his real estate purchases, political donation, and much more. Following this, Judge Lewis A. Kaplan has now set a tentative trial date of October 2 which might be preponed or postponed a day or two. It’s also reported that due to the accusation of fraud and multiple financial offenses, SBF might face 115 yrs of imprisonment.
FTX Task Force To Recover FTX Customer Funds
Meanwhile, on the same day, January 3 the Manhattan US Attorney’s Office revealed a plan to form FTX Task Force. This Task Force will mainly focus on investigations and the charges that are currently faced by FTX. Here the Task Force will try to recover the victim’s assets from FTX.
At present, Sam Bankman-Fried is out on $250 million bail, but he is currently under house arrest at his parent’s place. It’s just not SBF, even FTX co-founder Gary Wang and Alameda Research’s former CEO Caroline Ellison is also facing charges.
On the other hand, as per the sources, the FTX Task Force will have lawyers from Money Laundering, Securities and Commodities Fraud, Public Corruption, and Transnational Criminal Enterprises departments. The Securities and Exchange Commission has reported that the customers have stated a loss of $8 billion after FTX and Alameda Research collapsed.
As mentioned earlier, Alameda Research which is SBF’s hedge fund had huge stakes in FTT tokens which is a native token of FTX. These staked FTT tokens were used to lend billions of loans.