Disgraced Co-Founder of Collapsed Crypto Exchange FTX Facing New Criminal Charges
Former crypto billionaire and co-founder of FTX, Sam Bankman-Fried (SBF), is facing a new round of criminal charges.
According to court documents, the US Department of Justice (DOJ) is charging him with allegedly bribing Chinese officials with tens of millions of dollars.
The new superseding indictment submitted to the Southern District of the New York US District Court reviews the charges against Bankman-Fried.
Prosecutors allege that Bankman-Fried corrupted the operations of the cryptocurrency companies he founded and controlled, including FTX and Alameda Research, through a pattern of fraudulent schemes that victimized FTX customers, investors, financial institutions, lenders, and the Federal Election Commission.
They further claim that SBF stole customer deposits to keep his frauds afloat, make speculative investments, contribute to charities, and enrich himself.
The prosecution alleges that Bankman-Fried attempted to bribe one or more Chinese government officials to regain access to Alameda trading accounts that had been frozen by Chinese law enforcement authorities. The document alleges that SBF’s attempted bribery ran a price tag of at least $40,000,000.
Representatives of Bankman-Fried are yet to comment on the new allegations. The DOJ’s action is a severe blow to the former crypto billionaire and could result in significant penalties if he is found guilty of the charges.
The new round of criminal charges against Sam Bankman-Fried is a stark reminder of the regulatory risks in the cryptocurrency industry. Despite the potential for significant returns, investors must remain vigilant when selecting cryptocurrency exchanges and should conduct comprehensive due diligence before investing.
This case serves as a warning to others who may be considering engaging in fraudulent activities within the industry.