US prosecutors reportedly investigating FTX founder Sam Bankman-Fried for fraud

US federal prosecutors may bring a fraud case against FTX founder and former CEO Sam Bankman-Fried. Bloomberg reports that Justice Department officials met with the crypto exchange's bankruptcy team this week to discuss the documents investigators are aiming to obtain from the company.

The meeting included prosecutors from the Southern District of New York, Assistant U.S. Attorney Roos, agents from the Federal Bureau of Investigation and attorneys from FTX. Roos, in particular, was involved in the prosecution of Nikola founder Trevor Milton, who was convicted of misleading investors earlier this year. According to Bloomberg, the potential charges were not discussed at the meeting that took place this week.

The Department of Justice is looking "closely" at whether FTX improperly transferred hundreds of millions of dollars when the company filed for bankruptcy on Nov. 11. It also investigates whether the exchange broke the law when it transferred funds to sister company Alameda Research.

In his recent interview with the New York Times, Bankman-Fried denied knowingly misappropriating client funds. “Obviously I made a lot of mistakes. There are things I would give anything to do again,” he said. “I never tried to defraud anyone. whatever." He will testify before the House Committee on Financial Services next week, a panel that will also include testimony from current FTX CEO John J. Ray III. Ray accused Bankman-Fried of having makes "erratic and misleading public statements" about FTX.

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