New York Times reports US prosecutors are investigating Sam Bankman-Fried

New York prosecutors are examining possible market manipulation of TerraUSD (UST) and LUNA by the founder of the cryptocurrency exchange FTX, Sam Bankman-Fried. The New York Times reports, citing familiar sources.

According to sources, the investigation is in its early stages — it is not yet clear whether the authorities have identified any wrongdoing by Bankman-Fried. Prosecutors allege he consciously directed the quotes for two interrelated assets to benefit entities under his control, including Alameda Research.

One of the publication’s sources noted that during the Terra ecosystem collapse, the bulk of sell orders for the stablecoin UST came from a trading firm associated with the founder of FTX.

NYT sources added that law enforcement authorities are separately examining FTX’s activities. The platform is suspected of violating US anti-money-laundering laws.

As reported in November 2022, journalists report on investigations by the SEC and CFTC into FTX.

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