FTX Founder Sam Bankman-Fried Faces New Charges
Sam Bankman-Fried, the founder of FTX, is facing new charges in a recent indictment that was unsealed on February 23.
This new indictment, which includes 12 charges, four new, reveals new details of illegal political donations that Bankman-Fried made to curry favor in Washington.
Bankman-Fried has pleaded not guilty to all charges in the case. The indictment alleges that Bankman-Fried stole billions from customers and investors to prop up the operations of FTX and its sister company, Alameda Research, and used the stolen funds for speculative investments and charitable donations.
According to the indictment, Bankman-Fried made over 300 political contributions totaling tens of millions of dollars that were unlawful because they were made in the name of a straw donor or paid for with corporate funds.
The document further claims that Bankman-Fried tried to conceal certain political donations by donating the money under the names of two other FTX executives, likely Nishad Singh and Ryan Salame.
The straw donor scheme was executed in part via encrypted messaging app Signal, and Bankman-Fried and his co-conspirators made a concerted effort to hide the scheme by recording outgoing wire transfers from Alameda to individuals’ bank accounts for the purpose of making contributions as Alameda “loans” or “expenses.”