Crypto News

US prosecutors launch website for alleged Bankman Fried fraud victims

By Luc Cohen

NEW YORK (Reuters) – The U.S. government is planning to launch a website for victims of the alleged fraud by FTX cryptocurrency exchange founder Sam Bankman-Fried to communicate with law enforcement.

In court filings filed Friday, federal prosecutors in Manhattan asked US District Judge Lewis Kaplan for permission to use the website to notify victims, rather than contacting each one individually.

FTX could owe more than 1 million people money, making it “impossible” to contact everyone, the newspapers say.

US prosecutors launch website for alleged Bankman Fried fraud victims, Crypto Trading News

Federal law requires prosecutors to contact potential crime victims to inform them of their rights, including the rights to redress, a court hearing, and protection from the accused.

Kaplan has yet to decide on the application, but the website had gone live Friday afternoon.

“If you believe you have been the victim of a fraud by Samuel Bankman-Fried, A/K/A/ ‘SBF,’ please contact the Victims/Witness Coordinator at the United States Attorney’s Office,” the site.

The US Attorney’s Office in Manhattan did not immediately respond to a request for comment.

Bankman-Fried, 30, has pleaded not guilty to eight counts of wire fraud and conspiracy related to FTX’s collapse in November.

Prosecutors said he stole billions in FTX customer deposits to pay off debt for his hedge fund Alameda Research and lied to investors about FTX’s financial condition.

The former billionaire has admitted flaws in risk management but said he doesn’t see himself as criminally liable.

Bankman-Fried’s attorneys did not immediately respond to a request for comment Friday.

(Reporting by Luc Cohen in New York, editing by Leslie Adler)

Source: Crypto News Deutsch

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