FBI Dives Into FTX Customer Records — Field Offices Issue Subpoenas to Bankruptcy Consultants

Reports indicate that the U.S. Federal Bureau of Investigation (FBI) has received data on FTX clients from the advisors of the now-insolvent firm. These consultants have complied with a minimum of five inquiries issued by the bureau’s local offices across various states.

FTX Implosion Leads to FBI Data Dragnet

The collapse of FTX has drawn the FBI’s attention to its data, following a Bloomberg report by Jonathan Randles that revealed the exchange’s consultants, Alvarez & Marsal, had provided the agency with trading information and client details.

There are multiple reasons why U.S. law enforcement would seek access to this data. In the event of FTX’s bankruptcy, the FBI’s investigation may extend to the company’s management practices and any potential violations of financial regulations or acts of misconduct that may have led to its financial downfall.

The FBI might be scrutinizing whether certain customers received preferential treatment during the company’s collapse. According to Randles’ account, advisors received “subpoenas from at least five FBI field offices,” spanning cities from Portland to Philadelphia, Minneapolis, and Oakland.

This insight springs from billing documents belonging to Alvarez & Marsal, which also indicate that trading details were handed over to the FBI and a thorough review of FTX’s “cloud-computing data.”

Attempts by Randles to obtain a statement from Alvarez & Marsal went unanswered. In situations like that of FTX, the FBI’s pursuit of data often signals an inquiry into suspected illegalities, including fraud, money laundering, or other financial offenses.

Through the lens of customer data, the FBI could reconstruct a comprehensive narrative of the transactions, pinpoint discrepancies or illicit conduct, and compile evidence for any ensuing legal action.

The news follows a jury convicting FTX founder Sam Bankman-Fried on all counts. Bankman-Fried’s sentencing date is scheduled for March 28, 2024, he faces more than 100 years in prison.

What do you think about the FBI sifting through FTX’s customer data? Share your thoughts and opinions about this subject in the comments section below.