The US Department of Justice charged former FTX CEO Sam Bankman-Fried with four new charges, bringing the total to 12.
On the evening of February 23 (Vietnam time), the US Department of Justice announced additional criminal charges, forcing former FTX CEO Sam Bankman-Fried to add four new charges, including:
- Bank fraud;
- Operating an unlicensed money transfer organization;
- Violating regulations on mobilizing political donations;
- Conspiracy to make illegal political donations.
Investigators allege Sam Bankman-Fried and his co-conspirators in the process of opening the bank account “falsified statements to the partner financial institution that the account would be used for transactional and market-making purposes.” market”, while the main use is to circulate customers’ deposits.
The former FTX CEO and the exchange’s managers also make political donations to candidates and committees in the New York state government, but using other people’s names. The motive behind the action is to overcome the barrier of personal support for a candidate or political organization.
FTX-Alameda’s books show political donations of up to $100 million, but federal government statistics do not record any FTX-related payments. An independent statistic of CoinDesk confirmed that FTX sent money to one-third of the total 536 US congressmen participating in the latest Congress.
The Justice Department also accused Sam Bankman-Fried of embezzling hundreds of millions of dollars in FTX users’ funds. Part of that was used to buy Robinhood stock, but was confiscated by the US in the $700 million fortune of the former FTX CEO. The indictment also asks the court to grant the authority to block the remaining $ 140 million in cash being held in US banks in the name of FTX Digital Markets – a subsidiary of FTX in the Bahamas.
Previously, in mid-December 2022, the US Department of Justice issued a decision to arrest Sam Bankman-Fried for the flash crash of the FTX cryptocurrency exchange 1 month earlier, with 8 charges:
- Conspiracy to defraud customers’ deposits;
- Fraudulent customer deposits;
- Conspiracy to defraud the creditor’s money;
- Fraudulent creditor money;
- Conspiracy to defraud property;
- Securities fraud conspiracy;
- Conspiracy to launder money;
- Conspiracy to defraud America and violate financial donation regulations.
Sam Bankman-Fried in January 2023 declared himself innocent and accepted the legal fight. This controversial figure also applied for bail with a bail value of up to $ 250 million and was approved by the court, but recently repeatedly violated the Internet use regulations and was warned by the court. The trial of the former CEO of FTX will take place in October 2023.
In addition to the indictment of the US Department of Justice, Sam Bankman-Fried also faces civil lawsuits from the Securities and Exchange Commission (SEC) and the Futures Trading Commission (CFTC). agreed to defer its prosecution request in favor of a higher authority, the Department of Justice.