by Ben Whedon
The DOJ has thus far been able to freeze only a small portion of the stolen digital assets.
The Department of Justice is reportedly investigating an alleged hack of the cryptocurrency exchange FTX that resulted in the theft of $372 million from the firm just after it filed for bankruptcy.
New FTX CEO John J. Ray III previously stated that the firm had witnessed "unauthorized access" to its assets, prompting the DOJ inquiry, according to the Washington Examiner. The DOJ has thus far been able to freeze only a small portion of the stolen digital assets.
Ray has been a vocal critic of the company's prior management, telling Congress that the company was utterly devoid of meaningful oversight and risk-assessment safeguards to prevent its collapse.
"The issue here I was speaking to is I've never seen an utter lack of record keeping, absolutely no internal controls whatsoever," he said. "It's really unprecedented in terms of the lack of documentation."
The cryptocurrency exchange suffered a sudden collapse in November when many of its investors simultaneously attempted to withdraw their stakes from the firm, rendering it unable to fully remunerate them. Reports quickly emerged of missing assets and alleged fraud.
FTX founder Sam Bankman-Fried is currently under house arrest at his parents' California home after posting assets to gain his release against a $250 million bail. He faces a litany of federal charges.
His business associates, former Alameda Research CEO Caroline Ellison and FTX cofounder Gary Wang, meanwhile have both pleaded guilty to criminal fraud charges and are cooperating with prosecutors.
Ben Whedon
Source: https://justthenews.com/nation/technology/doj-investigating-alleged-multi-million-dollar-hack-cryptocurrency-ftx
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