Sam Bankman-Fried Pleads Not Guilty, Task Force Formed To Recover Billions of Dollars

Defunct crypto exchange FTX has been attributed to a liquidity crunch on millions of crypto traders and several digital assets firms. With billions of dollars at stake, the Fed has come out guns blazing to help recover customers’ funds from FTX. Notably, the US Federal Government has created a task force to investigate the exchange and help customers recover lost funds. 

Furthermore, the FTX implosion has awakened regulators’ attention to cryptocurrency projects, which are said to operate in a predatory environment. For instance, the SEC has warned all crypto companies must adhere to strict guidelines, including robust disclosure policies, financial reporting obligations, and stringent internal governance protocols.

Additionally, the Commodity Futures Trading Commission (CFTC) has also taken a hard stance on crypto companies, announcing new rules and laws that must be adhered to. 

FTX Task Force launched by Attorney’s Office

The task force, dubbed the FTX Crypto Task Force, is composed of members from the Federal Trade Commission and other government agencies.

The United States Attorney’s Office for the Southern District of New York (SDNY) has created the FTX Task Force in order to pursue lost customer funds, and successfully manage investigations as well as legal action associated with this exchange’s downfall.

Damian Williams, the Manhattan U.S. Attorney, declared in a statement that they are unrelentingly endeavoring to address the FTX scandal: “We are working around the clock here.” It is evident that the Southern District of New York will not rest until this situation has been resolved successfully and justice served.

The task force has already identified several Crypto companies that may have been affected by FTX’s actions, and they are now working to securely recover customers’ funds. The task force is also collaborating with Crypto companies to identify further safeguards and measures that can be implemented to protect customers’ investments.

The founder of FTX, SBF, pleaded not guilty in U.S. court to charges of fraud and money laundering. SBF’s lawyers claim that their client has been wrongfully charged, stating

“SBF had no knowledge or intent to commit any alleged fraud,”

Meanwhile, the SBF legal team submitted a letter on Tuesday requesting that the identity of two people who are attempting to guarantee his bail be redacted. They contended there is no motive behind making this information public and that it should not be unveiled to the general populace.

Bankman-Fried’s lawyers asserted that the disclosure of these two people’s identities would jeopardize their security and put them in danger.