U.S. Gov’t launches website for Bankman-Fried alleged fraud victims

Sam Bankman-Fried

In order to facilitate communication between victims of Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, and law enforcement, the US government has developed a website.

Late Friday night, U.S. District Judge Lewis Kaplan in Manhattan issued an order authorizing federal prosecutors to use the website instead of contacting victims personally.

Prosecutors had said that it would be “impracticable” to contact everyone FTX may owe money to.

Federal law mandates that prosecutors make contact with potential crime victims and advise them of their rights, including the right to seek compensation, the right to be heard in court, and be shielded from defendants.

“If you believe that you may have been a victim of fraud by Samuel Bankman-Fried, A/K/A/ ‘SBF,’ please contact the victim/witness coordinator at the United States Attorney’s office,” the website read. The website had gone live by Friday afternoon.

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In relation to the collapse of FTX in November, Bankman-Fried, 30, has entered a not guilty plea to eight counts of wire fraud and conspiracy.

According to the prosecution, he defrauded investors by lying about FTX’s financial situation and took billions in deposits from FTX customers to pay off debts for his hedge fund, Alameda Research.

The former millionaire admitted to poor risk management, but said that he did not see himself as criminally responsible.