Coinpedia Fintech News

U.S Fed Investigate Sam Bankman-Fried Over Terra Luna Collapse

  • Sam Bankman-Fried is being investigated by U.S. Federal prosecutors and SEC.
  • Alameda Research may be more responsible for a significant portion of UST sell orders.

An unexpected turn was revealed in Sam Bankman-Fried’s FTX disaster despite U.S. representatives summoning SBF to testify at a hearing on December 13, the House Committee on Financial Services.

Federal prosecutors and the Securities and Exchange Commission (SEC) opened an investigation into whether the former FTX CEO manipulated the market’s past fall involving two interconnected currencies, TerraUSD and LUNA, to benefit the organizations he controlled, such as FTX exchange and Alameda Research, a trading company.

Sam Bankman-Fried said in a recent statement, which NYT reported;

Not aware of any market manipulation and certainly never intended to engage in market manipulation.

Alameda Research is Behind The Terra Collapse?

This November report reveals that an $8 billion hole in the FTX balance sheet led Sam Bankman-Fried’s empire to collapse. After that FTX declared bankruptcy on November 11, and SBF left his position as CEO.

The reason for TerraUSD and LUNA’s demise and setting off is still uncertain. And Alameda Research may be more responsible for a significant portion of “UST sell orders” as they took short positions to profit from falling LUNA values during the May crisis. Also, Alameda Researched has bet strongly on the price of LUNC decline.

Further, According to the NYT report, Sam Bankman-Fried is being investigated by US authorities in Manhattan. However, the probe is still in its early stages, and it’s not clear whether the authorities have found evidence of illegal activity on the part of the bankruptcy crypto exchange founder who is currently under scrutiny.

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of TheCryptoArea. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.



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