The U.S. government plans to launch a website for victims of FTX cryptocurrency exchange founder Sam Bankman-Fried's alleged fraud to communicate with law enforcement.
In court papers filed on Friday, federal prosecutors in Manhattan asked U.S. District Judge Lewis Kaplan for permission to use the website to notify victims, rather than contacting each individually.
FTX could owe money to more than 1 million people, making it "impracticable" to contact each, the papers said. Federal law requires prosecutors to contact possible crime victims to inform them of their rights, including the rights to obtain restitution, be heard in court and be protected from defendants.
Prosecutors have said he stole billions in FTX customer deposits to pay debts for his hedge fund, Alameda Research, and lied to investors about FTX's financial condition. The onetime billionaire has acknowledged risk management shortcomings, but said he did not consider himself criminally liable.Reporting by Luc Cohen in New York Editing by Leslie Adler
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