FTX Collapse Probed by Federal Prosecutors in Manhattan (2)

The stunning collapse of the cryptocurrency platform FTX is being investigated by federal prosecutors in Manhattan, people familiar with the probe said.

The US Attorney’s Office for the Southern District of New York is examining the circumstances surrounding FTX’s demise, the people said, asking not to be identified because the probe hasn’t been announced publicly.

FTX’s sudden implosion with $9 billion of liabilities and only $900 million in assets on its balance sheet sent the crypto market into a tailspin last week. The platform filed bankruptcy proceedings, along with 130 entities tied to the company including FTX subsidiaries FTX.US and ...