Bankruptcy advisors of collapsed crypto exchange FTX turned over client information to the US Federal Bureau of Investigation (FBI), according to court records.
A number of FBI offices, including Philadelphia and Oakland, received data on client transactions, according to documents from the consulting firm Alvarez & Marsal. Bloomberg announced the news for the first time.
The documents reveal that the federal government asked to sift through the data to “investigate all transactions and customer accounts.” But court records, made public yesterday, do not provide details on how much information federal agents received.
Customer privacy has been a hot topic since the collapse of FTX last year. Lawyers have repeatedly blocked attempts by major media outlets, including the New York Times And Dow Jones and Company-to reveal customer names.
They argued that former customers of the collapsed crypto platform could fall victim to scams and identity theft if their names were revealed.
The co-founder and ex-boss of the crypto brand, Sam Bankman-Fried, was stopped a month after the stock market crash and prosecutors said he mismanaged the exchange and lost billions of dollars in customer money in the process.
And the prosecutors were right: a jury Thursday found Bankman-Fried guilty of seven criminal charges, including fraud and money laundering.
FTX was one of the most recognizable brands in the industry and Bankman-Fried rubbed shoulders with politicians, celebrities and even given to Democrats and Republicans to try to influence crypto policy.
But according to prosecutors, it was ultimately a front to get rich, and the brand went bankrupt quickly and unexpectedly because he and his team mismanaged the digital assets giant.
Edited by Andrew Hayward