Feds launch FTX task force to recover victim assets, continue probes as Bankman-Fried pleads not guilty

Former FTX chief executive Sam Bankman-Fried (C) arrives to enter a plea before US District Judge Lewis Kaplan in the Manhattan federal court, New York, January 3, 2023. 

The FTX Task Force was created by the Manhattan U.S. Attorney's Office to handle investigations and prosecutions related to the company and others.

FTX founder and former CEO Sam Bankman-Fried pleaded not guilty to multiple counts of financial fraud and campaign finance crimes in a Manhattan district court.

The Southern District of New York is working around the clock to respond to the implosion of FTX.

Williams said it was an all-hands on-deck moment.

He said that the Task Force would be powered by all of the resources and expertise of the city.

The Securities and Commodities Fraud unit is one of the units that will be drawn to the task force.

Customers lost more than $8 billion as a result of fraud at FTX and Bankman-Fried's hedge fund.

When FTX filed for Chapter 11 protection in November, it claimed to have more than 100,000 creditor and liabilities of between $10 billion and $50 billion.

A $250 million personal recognizance bond was set for Bankman- Fried after he was extradited from the Bahamas.

The former CEO of Alameda and the co- founder of FTX pleaded guilty to multiple counts of fraud before he was extradited.

Ellison and Wang are cooperating with the investigation of Bankman- Fried.