post-thumb

Company asked to preserve records, Slack message and tweets deleted

Bankman-Fried then deleted the message, prosecutors said.

Sam Bankman-Fried, the founder of crypto exchange FTX, has been accused of deleting tweets, Signal messages, and even a Slack post from FTX's own general counsel, after being instructed to preserve all records. This information was released in an updated indictment by Manhattan federal court prosecutors.

The indictment alleges that Bankman-Fried deleted the post by FTX's general counsel, who had instructed employees to keep records, in November. This was the same month that FTX filed for bankruptcy protection. Additionally, prosecutors say Bankman-Fried deleted some of his tweets, and continued to use Signal, an encrypted messaging app which allows users to auto-delete messages.

The indictment also claims that Bankman-Fried used the app to message FTX's general counsel, as well as "current and former FTX employees." A New York federal judge has since blocked Bankman-Fried from using messaging apps that auto-delete texts.

The indictment, which originally charged Bankman-Fried with eight counts, including for fraud and conspiracy, has been updated to include 12 counts. The update also fleshes out the government's case, which alleges that Bankman-Fried commingled funds between Alameda Research, the hedge fund he also controlled, and FTX in order to make it appear as if all accounts were solvent.

Two other executives in Bankman-Fried's enterprise have pleaded guilty to the government's charges, and have been cooperating with the investigation.

Share:

More from Press Rundown