In a remarkable development, FTX advisers have begun providing the FBI with customers’ trading data. This action comes in response to multiple subpoenas from FBI field offices across the United States.
Advisory firm Alvarez and Marsal, entrusted with FTX’s financial consultations, has been pivotal in revealing transactions to the FBI. The firm’s billable work includes extracting trade information for the FBI’s investigations, spreading across Portland to Philadelphia.
According to court papers FTX responded to subpoenas from FBI offices in Oakland, Portland, Philadelphia, Cleveland, and Minneapolis,
Besides complying with official requests, the consultancy has poured significant effort into examining FTX’s transaction logs, particularly spotlighting specific customer activities and snooping through cloud computing data.
Whats alarming is that this assistance comes with a cost. FTX customers will shoulder the consultancy’s fees, which have eclipsed $21,000 for FBI-related inquiries alone. Moreover, since taking on the FTX case in November 2022, Alvarez and Marsal have billed nearly $100 million. Consequently, these expenses will trim the financial returns destined for FTX’s customers.
Nevertheless, there’s a silver lining. FTX’s CEO, John J. Ray III, has broadcasted a promising horizon where customers could see over 90% of their assets returned by late 2024. This promise hinges on a successful settlement strategy orchestrated between FTX’s creditors and debtors.
Significantly, while the nature of the FBI’s probe remains cloaked, the thread of a grand jury subpoena entwines itself within the billing records. Hence, the revelation of these subpoenas underlines the gravity of the FBI’s ongoing investigations into the bankrupt crypto exchange’s affairs.
Additionally, it’s crucial to recognize the substantial labor Alvarez and Marsal have dedicated to sifting through FTX’s data housed within cloud services. This undertaking was particularly emphasized in their September court filings.
As the situation unfolds, stakeholders eagerly await further developments. Moreover, the disclosure signals a meticulous legal process ahead, with FTX’s customers hoping for a resolution that maximizes their financial recovery.