Reported by: Zahra Tayeb

US prosecutors in New York have put together an FTX Task Force to nail down and recover billions of dollars of missing funds belonging to the collapsed crypto exchange’s customers.

More than 1 million customers could be affected by what the US government has described as an epic fraud at FTX. Its former CEO, Sam Bankman-Fried, faces criminal charges that allege he funneled customer funds from the crypto trading platform to FTX’s sister trading arm Alameda Research.

Investors in the FTX lost over $8 billion due to the alleged fraud at the now-bankrupt crypto group, the Securities and Exchange Commission said in its complaint. The FTX businesses are estimated to owe their biggest creditors up to $3 billion, per the Financial Times, while Reuters reported that Bankman-Fried transferred at least $4 billion in FTX funds, including customers’ money, to Alameda.

Read full report: https://www.businessinsider.co.za/amp/crypto-ftx-task-force-recover-missing-customer-funds-bankman-fried-2023-1