US probes how $370 million vanished in hack after FTX bankruptcy

$370 million went missing from FTX hours after filing for bankruptcy

Federal prosecutors are investigating an alleged cybercrime that drained more than $370 million from crypto exchange FTX hours after it filed for bankruptcy, Bloomberg News reported on Tuesday citing a person familiar with the case.

The criminal probe into the stolen assets, launched by the Department of Justice is separate from fraud case against FTX co-founder Sam Bankman-Fried, the report added.

A spokesperson for the Manhattan U.S. attorney's office said he could not confirm or comment on the issue, while DoJ and FTX did not immediately respond to a Reuters request for comment.

A photo of U.S. Attorney Damian Williams

U.S. Attorney Damian Williams speaks during a news conference about the criminal charges filed against FTX founder Sam Bankman-Fried, Tuesday, Dec. 13, 2022, in New York. The U.S. Securities and Exchange Commission has charged the former CEO of faile (AP Photo/Julia Nikhinson / AP Newsroom)

FTX filed for U.S. bankruptcy last month and Bankman-Fried stepped down as chief executive, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

BANKMAN-FRIED CASE REASSIGNED BECAUSE JUDGE'S HUSBAND HAS TIES TO FTX

The U.S. Department of Justice accused Bankman-Fried of causing billions of dollars of losses related to FTX, which a U.S. prosecutor called a "fraud of epic proportions."

EX-ALAMEDA CEO CAROLINE ELLISON SAYS SHE AND SAM BANKMAN-FRIED MISLED FTX INVESTORS IN COURT PLEA

Bankman-Fried founded FTX in 2019 and rode a boom in the values of bitcoin and other digital assets to become a billionaire several times over as well as an influential donor to U.S. political campaigns.

CLICK HERE TO GET THE FOX BUSINESS APP

The FTX collapse has fanned fears about the future of the crypto industry after the beleaguered exchange outlined a "severe liquidity crisis".