Prosecutors are reportedly investigating transactions involving crypto wallets associated with Sam Bankman-Fried.
Blockchain analysts have spotted more than $1 million being moved from these accounts over the last several days, and United States prosecutors are trying to identify who is moving the funds and what they are doing with them, Bloomberg reported Friday (Dec. 30), citing an unnamed source.
The conditions of Bankman-Fried’s bail forbid him from making financial transactions of more than $1,000 unless they are for legal costs or unless he gets permission from the government or courts, according to the report.
Bankman-Fried denied in two tweets posted Friday that he had made the transactions.
“None of these are me,” he said in one tweet. “I’m not and couldn’t be moving any of those funds; I don’t have access to them anymore.”
None of these are me. I’m not and couldn’t be moving any of those funds; I don’t have access to them anymore.https://t.co/5Gkin30Ny5
— SBF (@SBF_FTX) December 30, 2022
Then, in a reply to his own tweet, Bankman-Fried said that these could be, and hopefully were, legitimate transactions made by someone at FTX.
I believe it is likely the case that various legit legs of FTX have the ability to access these funds; hopefully that’s what’s happening here. If not, hopefully one steps in soon to do so. I would be happy to help advise regulators on this if any wanted.
— SBF (@SBF_FTX) December 30, 2022
Bankman-Fried was released on a $250 million bond — believed to be the largest ever — on Dec. 22.
During his first court appearance in the U.S., he was also ordered to live at his parent’s home in California, be electronically monitored and restrict his travel to parts of California and New York.
On Thursday (Dec. 29), the Bahamas’ Securities Commission announced that it had seized $3.5 billion from FTX on Nov. 12 — one day after FTX filed for bankruptcy protection in U.S. federal court — to protect the assets for customers and creditors after Bankman-Fried had mentioned cyberattacks on one of the arms of the company.
Friday’s report of funds being transferred came as Bankman-Fried’s next scheduled court appearance nears.
He is to appear before a judge Tuesday (Jan. 3) and is expected to enter a plea at this criminal arraignment, in Manhattan, New York.
As PYMNTS reported, Bankman-Fried has been charged by the U.S. Department of Justice with eight criminal counts that range from wire fraud to conspiracy. Bankman-Fried has maintained his innocence in the events that led to the rapid implosion of his crypto empire and the loss of billions of misallocated customer funds.
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