The ongoing FTX debacle has led to federal authorities being given a lot of personal data
FTX advisers have recently been issued subpoenas by several FBI field offices, forcing the bankrupt cryptocurrency firm to disclose data from customer transactions and accounts, according to a Bloomberg report that reviewed the document. FTX consultants have turned over records during the past few months in response to the subpoenas, which detail specific trades made by customers on the exchange.
Billing records from the firm acting as financial advisors for FTX, Alvarez and Marsal, disclosed that their staff satisfied FBI requests over the past few months by providing information regarding customer trades to FBI field offices in Philadelphia, Oakland, Portland, Minneapolis and Cleveland.
However, the billing records didn’t indicate the type of probe being conducted or who the FBI was investigating, although one of the records cited a grand jury subpoena.
Alvarez and Marsal reported in a court filing that in September, it shared transaction info from the FTX’s cloud computing provider in compliance with an FBI subpoena from its Philadelphia office. Customer accounts and transactions were also requested from the FBI’s Oakland office in July. In August, Alvarez and Marsal provided specific customer transaction data to the FBI’s Portland in response to its subpoena.
FTX customers will foot the bill for the advisers’ work, with two of them invoicing over $21,000 in July, August and September for services related to the FBI subpoenas. Alvarez and Marsal had billed FTX nearly $100 million in fees since November 2022, according to court records, which will be taken from the funds recovered by former FTX account holders.
New FTX CEO John J. Ray III recently disclosed that customers could receive over 90% of their funds by the end of 2024 in the agreement reached between creditors and debtors.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
