US prosecutors have expanded the
12 count charges against Sam Bankman-Fried, the founder of the now-bankrupt
cryptocurrency exchange, FTX. An additional indictment sealed on Tuesday
morning, alleges that the FTX Founder and others transferred approximately $40
million in bribes to one or more Chinese officials to unfreeze certain accounts
in late 2021.
State prosecutors are now
charging Bankman-Fried with conspiracy to violate the anti-bribery provisions
of the Foreign Corrupt Practices Act. Existing charges against the disgraced
cryptocurrency entrepreneur include conspiracy to commit wire, bank and securities
frauds, to operate an unlicensed money transmitting business, commit money
laundering and make unlawful political contributions, among others.
“In or about November 2021,
SAMUEL BANKMAN-FRIED, a/k/a “SBF,” the defendant, and others directed and
caused the transfer of at least approximately $40 million in cryptocurrency
intended for the benefit of one or more Chinese government officials in order
to influence and induce them to unfreeze the Accounts,” the indictment document reads.
Damian Williams, the United
States Attorney for the Southern District of New York, in a letter written to Lewis Kaplan, the Federal District
Court Judge in charge of the case, said the new indictment was returned on Monday by a grand jury. Damian also noted that the FTX Founder has not been arraigned on five
of the now-expanded charges.
Bribery Allegation
Linked to Alameda Research
Associated Press reports that
the alleged bribe is related to FTX-linked cryptocurrency hedge fund, Alameda
Research, whose trading accounts that contained about $1 billion in digital assets
were frozen by Chinese authorities in early 2021. The hedge fund held accounts
with two of China’s largest cryptocurrency exchanges, the outlet said, citing
the indictment.
US prosecutors have expanded the
12 count charges against Sam Bankman-Fried, the founder of the now-bankrupt
cryptocurrency exchange, FTX. An additional indictment sealed on Tuesday
morning, alleges that the FTX Founder and others transferred approximately $40
million in bribes to one or more Chinese officials to unfreeze certain accounts
in late 2021.
State prosecutors are now
charging Bankman-Fried with conspiracy to violate the anti-bribery provisions
of the Foreign Corrupt Practices Act. Existing charges against the disgraced
cryptocurrency entrepreneur include conspiracy to commit wire, bank and…
