US legislators want DOJ to charge FTX officials to the maximum extent of the law

According to the letter, “the collapse of FTX seems to have been driven by purposeful and deceptive actions” rather than carelessness on the part of its management.

Two Democratic senators from the United States have asked the Department of Justice to examine the collapse of FTX and possibly punish anyone responsible for misconduct.

Senators Elizabeth Warren and Sheldon Whitehouse urged in a letter dated November 23 to U.S. Attorney General Merrick Garland and Assistant Attorney General Kenneth Polite that the Justice Department investigate the collapse of cryptocurrency exchange FTX with “the greatest vigilance.” 

The MPs underlined the effect the bankruptcy of a major crypto business had on linked firms, such as Genesis and BlockFi, which halted trading, as well as monies that FTX regular investors may never recover.

Senators singled out former FTX CEO Sam Bankman-Fried for his participation in the incident, including his deleted tweet indicating exchange funds were “OK” and efforts to minimise the firm’s liquidity troubles. 

Warren and Whitehouse repeated descriptions of FTX’s management from the company’s bankruptcy proceedings, in which Bankman-Fried and others were described as “inexperienced and naive.”

The letter said that Mr. Bankman-Fried and other FTX executives adopted purposeful and deceptive strategies to profit themselves, leading to the company’s demise. 

It is unknown if the Justice Department will initiate an inquiry against FTX, but worldwide financial authorities and legislators have taken action in response to the collapse of the exchange.
At the time of publishing, Bankman-Fried and a large number of FTX executives were headquartered in the Bahamas, where financial investigators and securities authorities were apparently probing probable criminal activity. The Financial Crimes Inquiry Agency of Turkey said on November 14 that it has opened an investigation against FTX-affiliated persons and organisations.

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