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The United States Attorney\u2019s Office for the Southern District of New York (SDNY) has formed the FTX Task Force to \u201ctrace and recover\u201d missing customer funds, as well as handle investigations and prosecutions related to the exchange\u2019s collapse.\u00a0<\/p>\n
The announcement came in a statement from U.S. Attorney Damian Williams, who is the federal prosecutor in the FTX case<\/a> involving founder Sam Bankman-Fried.<\/p>\n Charges from the Manhattan attorney\u2019s office against Bankman-Fried include wire and securities fraud, conspiracy to commit wire and securities fraud, money laundering and violation of campaign finance laws.<\/p>\n \u201cThe Southern District of New York is working around the clock to respond to the implosion of FTX,\u201d said Williams in the statement, adding: <\/p>\n \u201cIt\u2019s an all-hands-on-deck-moment.\u201d<\/p><\/blockquote>\n \u201cWe are launching the SDNY FTX Task Force to ensure that this urgent work continues, powered by all of SDNY\u2019s resources and expertise until justice is done.\u201d<\/p>\n According to the SDNY, the task force\u2019s team consists of senior prosecutors from its securities and commodities fraud, public corruption, money laundering and transnational crime enterprise units \u2014 which will be responsible for the \u201cinvestigation and prosecution of matters related to the FTX collapse.\u201d<\/p>\n Meanwhile, its \u201casset forfeiture and cyber capabilities\u201d will be used to \u201ctrace and recover\u201d the billions of dollars worth of missing customer funds, it added. <\/p>\n A similar effort had already been underway<\/a> by FTX\u2019s new management, which hired financial advisory company AlixPartners in December to conduct \u201casset-tracing\u201d for FTX\u2019s missing digital assets.<\/p>\n Related: <\/em><\/strong>Sam Bankman-Fried enters not guilty plea for all counts in federal court<\/em><\/strong><\/a><\/p>\n The Manhattan U.S. Attorney\u2019s Office reportedly first began its probe<\/a> of FTX\u2019s collapse shortly after the firm filed for bankruptcy on Nov. 11.<\/p>\n According to its website, the U.S. Attorney’s Office for the Southern District of New York is known for prosecuting cases involving the violation of federal laws and investigates a broad array of criminal conduct \u201ceven when the conduct arises in distant places.\u201d<\/p>\n FTX and key executives including Bankman-Fried, co-founder Gary Wang and Alameda Research former CEO Caroline Ellison had since September 2021 been operating out of the Bahamas,\u00a0 where many of the alleged crimes are believed to have been perpetrated. <\/p>\n On Jan. 3, Bankman-Fried pleaded \u201cnot guilty\u201d to all eight criminal charges related to FTX\u2019s implosion \u2014 which carries a total of 115 years of prison for the FTX founder if he is convicted. <\/p>\n Last month, Wang and Ellison pleaded guilty<\/a> to federal fraud charges relating to their role in the collapse of the FTX exchange. <\/p>\n<\/div>\n