The claims began circulating after crypto experts noticed that digital accounts linked to Alameda were exchanging funds. Cryptocurrency transactions are recorded in a public ledger that anyone can access and analyze so the movement of money is visible.
Ms Sassoon said prosecutors in court were investigating the transfers. “Although we do not know whether the defendant was the person who made these transfers, at some point he had access to these wallets,” he said.
Mr. Bankman-Fried did not make the transfers. Cohen refused.
Ms. Sassoon also noted a brewing jurisdictional battle between FTX’s new leadership overseeing the bankruptcy process in the United States and the Bahamas government. Mr. He said Bankman-Fried helped foreign regulators acquire FTX assets and expressed a desire to “stop” the U.S. bankruptcy process.
Since he authorized FTX to file for bankruptcy on November 11th, Mr. Bankman-Fried repeatedly said she regretted the decision. Mrs. As Sassoon spoke, the FTX founder nodded and wrote a note to his lawyer. Mr. Cohen told the judge that the transfer to the controllers Ms. Sassoon describes was ordered by a court in the Bahamas.
Judge Kaplan was appointed to preside over Mr. Bankman-Fried’s case a week ago after the original judge, Ronnie Abrams, said she was recusing herself because she worked for Davis Polk & Wardwell FTX, the law firm where her husband is a partner. In 2021. Although her husband was not involved in that representation, she said she was stepping down “to avoid any potential conflict or the appearance of one.”
Prosecutors have promised to continue investigating, and Mr. More executives can be blamed for Bankman-Fried’s orbit. On Tuesday, Damian Williams, the U.S. attorney for the Southern District of New York, announced the creation of a special FTX task force of prosecutors drawn from divisions of his office that investigate securities fraud; public corruption; and money laundering and transnational crime. The task force will be chaired by Andrea Griswold, Chief Counsel to the US Attorney.
Lisette Cruz Contributed report.