FTX Founder SBF Is Probed For Crypto Market Manipulation: NYT

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US federal prosecutors have launched an investigation into FTX founder SBF for market manipulation, according to the NYT. The investigation is in its early stages and it is unclear whether prosecutors have determined any wrongdoing. FTX filed for Chapter 11 bankruptcy on Nov. 11 after a week-long severe liquidity crunch. LoadingSomething is being loaded.

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U.S. federal prosecutors are investigating FTX founder Sam Bankman-Fried for tampering with two cryptocurrencies last spring, The New York Times reported Wednesday, citing two people with knowledge of the matter.

They launched an investigation into whether Bankman-Fried was controlling the prices of TerraUSD and Luna for the benefit of FTX and its affiliate trading company Alameda Research, according to the Times.

The investigation is in its early stages and it is unclear whether prosecutors have determined any wrongdoing on the part of the crypto exchange founder.

The issues surrounding Bankman-Fried only got worse after the collapse of FTX. The exchange filed for Chapter 11 bankruptcy on Nov. 11 after failing to secure a bailout following a week-long severe liquidity crunch. Bankman-Fried resigned as CEO the same day. Reuters reported at the time that FTX transferred billions of dollars in client funds to Bankman-Fried’s Alameda Research.

Banker Fried told The Times in a statement on Wednesday that 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 hedging purposes,” he added, according to the Times.

Bankman-Fried and a representative for the U.S. Attorney for the Southern District of New York did not immediately respond to Insider’s requests for comment sent outside of normal business hours.

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