Sam Bankman-Fried Was accused With 4 More Charges

Key Points:

• The US Department of Justice has brought four new criminal allegations against former FTX CEO Sam Bankman-Fried.
• Investigators accuse Sam Bankman-Fried and his co-conspirators of conspiring to open the bank account “falsified statements to the partner financial institution claiming that the account would be used for trading and market-making.” market,” when the primary purpose is to circulate customer deposits.

The US Department of Justice added four fresh accusations against former FTX CEO Sam Bankman-Fried, increasing the total to 12.

On the evening of February 23, the US Department of Justice announced new criminal charges against former FTX CEO Sam Bankman-Fried, including bank fraud, operating an unlicensed money transfer organization, violating regulations on mobilizing political donations, and conspiracy to make illegal political donations.

Authorities claim Sam Bankman-Fried and his co-conspirators “falsified claims to the partner financial institution that the account would be utilized for trading and market-making activities” while creating the bank account “, with the primary objective of circulating client money. The former FTX CEO and the exchange’s managers also make political contributions to New York state government candidates and groups in the names of others. The goal is to break through the barrier of personal support for a politician or political group.

FTX-records Alameda’s show up to $100 million in political donations, yet federal government figures show no FTX-related payments. According to an independent CoinDesk report, FTX contributed money to one-third of the 536 US representatives who attended the most recent session of Congress.

The Justice Department also charged Sam Bankman-Fried with stealing hundreds of millions of dollars from FTX consumers. Some of that was used to purchase Robinhood stock, but the US confiscated it as part of the former FTX CEO’s $700 million wealth. The indictment also urged the court to provide the authorities to seize the remaining $ 140 million in cash kept in US banks in the name of FTX Digital Markets, a Bahamas-based subsidiary of FTX.

In January 2023, Sam Bankman-Fried declared himself innocent and accepted the judicial struggle. This controversial person also petitioned for release with a bond amount of up to $ 250 million and was allowed by the court, but lately violated Internet use laws on many occasions and was cautioned by the court. The former CEO of FTX will stand trial in October 2023.

In addition to the US Department of Justice indictment, Sam Bankman-Fried faces civil litigation from the Securities and Exchange Commission (SEC) and the Futures Trading Commission (CFTC), although both have agreed to postpone prosecution to a higher authority, the Department of Justice.

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