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November 3, 2023

FBI Collected Transactional Data of FTX Customers During Bankruptcy Proceedings, According to Billing Records

By Mehron Rokhy

New data reveals that the Federal Bureau of Investigation (FBI) collected transactional data of FTX customers as the troubled crypto exchange went through its bankruptcy proceedings.

According to new billing documents from consultancy group Alvarez and Marshal, advisers for FTX have been gathering transactional data to comply with subpoenas from at least five different FBI field offices.

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Bloomberg reports that the federal agency sifted through cloud data, investigated accounts, and extracted information on specific users’ trades. However, the billing records don’t fully provide the details of the FBI’s investigation.

According to Bloomberg, Alvarez and Marshal said they extracted data from FTX’s Amazon cloud computing services – which held the private keys to billions of dollars worth of crypto assets – in September in response to a request by the FBI’s office in Philadelphia.

Furthermore, the consultancy firm said that it also responded to requests from FBI offices in Oakland and Portland, investigating customer accounts in July for the former and extracting customer information related to specific transactions in August for the latter.

Other FBI bases that sent subpoena requests include the field offices in Cleveland and Minneapolis.

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Yesterday, disgraced FTX founder Sam Bankman-Fried was found guilty on seven charges stemming from the downfall of the crypto exchange. Bankman-Fried was convicted of numerous counts of fraud, mishandling billions of dollars worth of FTX customer funds, and conspiracy to commit money laundering.

He’s scheduled to be sentenced early next year and could face over 100 years behind bars.

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