Two Democratic US senators have called on the Justice Department to investigate FTX’s collapse and possibly prosecute individuals involved in the wrongdoing.
In a Nov. 23 letter to U.S. Attorney General Merrick Garland and Assistant Attorney General Kenneth Polite, Senators Elizabeth Warren and Sheldon Whitehouse. pleaseThe Department of Justice began its investigation of FTX with the “most thorough review,” with lawmakers citing the impact of the big-name collapse in the crypto space on the firms involved — both lending firms, including Genesis and BlockFi halted. Trading — and funds that retail FTX investors may not be able to recover.
the senator said “The collapse of FTX is not just a result of sloppy business and management practices. But it seems to be caused by a deliberately defrauding strategy that Mr. Bankman-Fried and other FTX executives use it to add value to themselves,” the letter said. “We ask the Ministry to include these ‘victims’ pending investigation. and if necessary then ask to prosecute the person responsible.”
Yang was unclear whether the Department of Justice would pursue an investigation of FTX, but financial regulators and lawmakers around the world have already done so after the FTX debacle, with financial auditors and regulators reportedly. Bahamas Securities is investigating potential criminal misconduct. And Turkey’s Financial Crimes Investigation Agency announced on Nov. 14 that it had started an investigation into individuals and entities involved in FTX.
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