Senators Call For FTX Investigation: “White Collar Crime”

Posted on

Identifying the case as a possible white-collar crime, two senators demanded an investigation into FTX, its former CEO Sam, Bankman-Fried and their accomplices.

The demand came in form of a letter, sent to the US Department of Justice (DoJ) on Wednesday (23). According to the senators, all the resources of the law must be available to hold those responsible for the fraud responsible.

Showing concern with the rapid collapse of FTX, the senators want to know the irregularities committed.

Senators demand investigation into crimes committed by FTX

In a letter sent to the DOJ, in the US, Senators Elizabeth Warren and Sheldon Whitehouse pressed on the case of FTX.

“We write to express deep concern about the disturbing allegations of fraud and illicit behavior that led to the collapse of cryptocurrency company FTX Trading Ltd. (FTX) and to urge the Department of Justice to hold the company executives accountable to the fullest extent of the law.”


According to them, after FTX’s bankruptcy filing and more 130 companies, the world of cryptocurrencies is going through serious problems.

There are several investors injured by the company that stopped withdrawals after its fi m. According to the senators, everything indicates that FTX committed a series of crimes, and an in-depth investigation should be conducted to clarify the case.

“The downfall of FTX it was not simply the result of sloppy business and management practices, but appears to have been caused by intentional and fraudulent tactics employed by Mr. Bankman-Fried and other FTX executives to enrich themselves.”

The so-called white collar crime indicates a crime situation without violence. Usually, its practitioners aim to enrich themselves or third parties, practicing fraud against victims.

SBF had already indicated the fraud in 2021, senators said

According to the letter sent to the US Department of Justice, the senators indicated that in 2021 the fraud had already been announced. This is because, at the time, SBF transferred 300 millions of dollars to its own portfolios.

“In fact, the Mr Bankman-Fried had already revealed his true interests in self-enrichment last year, when he diverted US$ 300 million into his own portfolio, an investment aimed at ‘helping to grow (FTX) , improve the user experience and allow to engage more with regulators’.”


Thus, everything is heading towards a clear situation of financial fraud perpetuated by the executive who commanded one of the largest cryptocurrency brokerages.

Finally, the senators indicated that the DOJ is good at investigating financial crimes, and FTX should be the next to have its situation better clarified.