(Bloomberg) -- Federal prosecutors are looking into a series of crypto transactions that online analysts have tied to digital wallets associated with disgraced crypto mogul Sam Bankman-Fried, according to a person familiar with the matter.
Blockchain analysts over the last several days have been tracking the movement of funds — estimated to be more than $1 million by data tracker Arkham Intelligence — that appear to be tied to digital wallets associated with the former chief executive of the FTX exchange and his defunct hedge fund Alameda Research. Bankman-Fried has said he has about $100,000 left in his bank account after being proclaimed earlier as a billionaire.
In a Tweet Friday, Bankman-Fried said he’s not making the transactions. “I’m not and couldn’t be moving any of those funds; I don’t have access to them anymore,” he said.
Prosecutors from the Southern District of New York, which filed criminal charges against Bankman-Fried earlier this month for his role in FTX’s collapse, are trying to get a handle on who is doing what with the assets in question. For instance, they’re looking at whether Bankman-Fried — if he’s making the transactions — is just moving around his own assets or cashing them out without approval, the person said.
SDNY officials declined to comment.
Bankman-Fried, who goes by SBF, was released last week on a $250 million bail. Per the conditions of his bail, the FTX co-founder can’t enter into financial transactions of more than $1,000 without getting it cleared by the government or court, except to pay for legal costs or fees. It’s unclear at this point whether he has violated those terms.
Within hours after FTX filed for bankruptcy on Nov. 11, about $372 million worth of tokens were stolen from the exchange, according to bankruptcy filings.
--With assistance from Hannah Miller and Muyao Shen.
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