SBF Faces Investigation For Market Manipulation

December 08, 2022

Story- Divya Sinha

As per NYT Report, prosecutors are investigating whether Sam Bankman-Fried played a part in the Terra/Luna collapse.

Prosecutors are looking into if SBF controlled Terra/LUNA price to benefit companies he controls including FTX and Alameda Research.

It is still not clear when prosecutors discovered SBF’s wrongdoing or when they began investigating TerraUSD and Luna trading.

Do Kwon, co-founder and CEO of Terraform Labs has also retweeted NYT Report.

Bahamas and US regulators are investigating the role of FTX management, including SBF, in the company's shocking collapse.

On-chain data shows that there was an FTT inflow of $4 billion from Alameda to FTX around the time Terra lost its bonds and wiped out $40 billion.

FTX in its bankruptcy filing mentioned that the exchange faced a severe liquidity crisis that necessitated the filing of these cases on an emergency basis.