FTX Crypto Exchange Fraud Investigation

Collapse of FTX Cryptocurrency Exchange Fraud

Billions in crypto coins have disappeared from crypto exchange FTX, sources say that FTX founder Sam Bankman-Fried has transferred $10 billion in client money from the platform to his own investment firm Alameda, of which 10 percent is now said to be missing.

It is unclear whether the money was stolen, by Bankman-Fried or by others. FTX itself reports in a message on Twitter that "unauthorized transactions" have been detected. Analysts also say that many hundreds of millions of dollars in cryptocurrencies have been withdrawn from the platform.

A large scale investigation is underway and that may take time, Digitpol advises to all crypto holders to move any crypto you own off any exchanges onto a wallet that is not connected to an active Internet connection and one that you have total control over the access (keys), this is known as a cold storage wallet. Major issues are unfolding regarding crypto exchanges we advise any victims of FTX to file a Police report regardless of the value or the modus operandi, ensure you provide evidence of your missing assets. In the event of a future seizure by authorities or recovery, an early filling may help you later in a complex recovery process. 


What is Cryptocurrency Investigation?

A Cryptocurrency Investigation is deployed when crypto oriented crime is committed, crypto crime involves a computer, internet, crypto wallets and a crypto exchange. The computer or exchange may have been used in the commission of a crime, or it may be the target. Cryptocurrency crime can be defined as: "Offences that are committed against individuals or exchanges or groups of individuals with a criminal motive to intentionally harm the reputation of the victim or cause reputation, physical or mental harm, or loss, to the victim directly or indirectly, using modern telecommunication networks such as Internet (networks including but not limited to Crypto exchanges, trading bots, wallets, chat rooms, emails, notice boards and groups) and mobile phones (Bluetooth/SMS/MMS)”.

Who Investigates crypto currency crime?

Digitpol's specialized cryptocurrency investigation team investigate crimes that involve or utilize blockchain and cryptocurrencies. Digitpol deploys investigative techniques to undercover complex transactions taken place on the blockchain.  Digitpol has 2 teams that investigate crypto currency crimes, they are located in Europe, The Netherlands and for Asia, Hong Kong.

Digitpol investigates theft of cryptocurrency wallets, tracing of transactions, rogue Initial Coin Offerings (ICO's), rogue alt coins, rogue trading platforms and rogue offerings on the blockchain. Digitpol has the ability to monitor and trace transactions from BitcoinEthereumRippleBitcoin CashBitcoin ABCCardanoBitcoin, SVLitecoinEOSTezosStellarMoneroDashZcashDogecoin, ALT and new currencies, in some cases when funds are transferred off the blockchain, we can undercover the identity of users of crypto currencies.