On Monday, 9th of January 2023, Charles Gasparino, a senior correspondent at FOX Business Network posted on Twitter about prosecutors claiming the FTX case is too big to handle.
BREAKING: Prosecutors are telling lawyers connected to @SBF_FTX fraud investigation the case is so sprawling that it could exhaust resources of the southern district since it includes potential bribery, campaign contribution violations, market manipulation on top of theft & fraud
— Charles Gasparino (@CGasparino) January 9, 2023
Gasparino’s tweet in connection to the FTX fraud investigation, broke the news that prosecutors are saying that the case could very well exhaust the hundreds of millions of dollars in resources of the entire southern district of New York.
There are speculations that the criminal investigation into the fraud committed by the FTX exchange and its CEO could be a lot more complex than lawmakers anticipated.
According to Charles Gasparinos, Federal prosecutors involved in the FTX investigation have reportedly told lawyers that the intricacies of the case are so widespread. It involves potential bribery, campaign contribution violations, market manipulation as well as theft, and fraud.
The United States department of justice is investigating the hundreds of millions of dollars worth of cryptocurrency taken in unauthorized transactions from FTX and the CEO Sam Bankman-Fried has been hit with eight criminal charges in the early months of December including money laundering and wire fraud.
The US District Court for the Southern District of New York was established in the late 18th century and has been the home of the country’s most important terrorism and white-collar crime trials.
If Garaspinos sources are right, the FTX investigation and trial could become the most complex endeavor the court has embarked on so far. Many believe that SBF’s campaign contribution violations could be a contributing factor to the elements taking up the majority of the court’s resources.
Court filings reveal that SBF has been charged with illegally contributing “tens of millions of dollars” to candidates and campaigns in the U.S.
Damian Williams, U.S. Attorney for the SDNY, said that the donations were disguised to look like they were coming from wealthy co-conspirators, but that they were funded by Alameda Research with stolen customer money.
None of the lawyers or prosecutors involved with the FTX investigation have confirmed these rumors, the SDNY has also remained silent on the issue.
The latest developments have led some to speculate that the so-called investigation isn’t being funded at all and is more likely to disappear, which means the case will be dropped since it is so extensive they have neither the funding nor manpower, which some refer to as a convenient set of events.
