According to the story, if Bankman-Fried is carrying out the transactions, prosecutors from the Southern District of New York (SDNY) are looking into whether he is just moving his own assets or cashing them out without authorization.
With a total estimated value of over $1 million by data tracker Arkham Intelligence, blockchain experts have been keeping an eye on the movement of funds over the last few days that appear to be tied to digital wallets connected to the former CEO of the FTX exchange and his shuttered hedge fund Alameda Research. Bankman-Fried asserts that despite earlier being dubbed a billionaire, he still has about $100,000 in his bank account.
In a tweet on Friday, Bankman-Fried declared that he was not performing the transactions.
Bankman-Fried was released last week after posting a $250 million bond. Records from the bankruptcy court show that just hours after FTX declared bankruptcy on November 11, a $372 million worth of tokens were reportedly stolen from the exchange.
All digital assets valued at more than $3.5 billion in FTX Digital Markets, the FTX subsidiary in The Bahamas, must now be transferred to digital wallets under the jurisdiction of the Securities Commission of The Bahamas.
The FTX Digital Markets Ltd (FTXDM) system has been the target of cyberattacks, according to the Bahamas Securities Commission, which has determined that there are already digital assets in FTXDM's possession or under its control. The Commission also noted that FTXDM employees have limited access to its AWS system name.