An investigation by federal prosecutors in Manhattan has been launched to determine if Sam Bankman-Fried improperly increased the prices of two digital currencies this spring, which later caused his own crypto exchange to crash last month.

According to reports in the crypto media, Bankman-Fried might have manipulated the prices of TerraUSD and Luna to benefit his firms FTX and Alameda Research.

The SEC and federal prosecutors are currently probing FTX to determine if its money transfer to Alameda was illegal.

Additionally, they are assessing if FTX has violated U.S. money-laundering laws, which require money-transfer companies to identify clients and report any unlawful activity to the authorities.

To help in the search for the billions of dollars lost in the Bitcoin exchange, FTX’s new management has hired forensic investigators from AlixPartners.

A lawyer for FTX’s creditors has reported that a “large number of assets” have gone missing from the crypto exchange at the end of November.

To address the situation, a forensics company has been enlisted to undertake the task of “asset tracing,” which involves finding and recovering the lost digital assets.

Furthermore, a 27-year-old Indian businessman is taking legal action against the founder of the crypto exchange, Bankman-Fried, after losing a reported $2 million when the exchange crashed in 2020.

Allegations of wire fraud have been made and the businessman has hired a legal team to pursue the matter.