Sam Bankman-Fried Hit with Additional $40M Chinese Bribery Charge

<p class="MsoNormal">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.</p><p class="MsoNormal">Prosecutors Accuse Bankman-Fried of Bribery</p><p class="MsoNormal">State prosecutors are now charging Bankman-Fried with conspiracy to violate the anti-bribery provisions of <a href="https://www.financemagnates.com/cryptocurrency/regulation/oracle-to-pay-23m-to-settle-bribery-charges-against-asian-subsidiaries/" target="_blank" rel="follow">the Foreign Corrupt Practices Act</a>. 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. </p><p class="MsoNormal">“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 <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590940/gov.uscourts.nysd.590940.113.2.pdf" target="_blank" rel="follow">indictment document</a> reads.</p><p class="MsoNormal">Damian Williams, the United States Attorney for the Southern District of New York, <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590939/gov.uscourts.nysd.590939.113.0.pdf" target="_blank" rel="follow">in a letter</a> 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. Additionally, Damian noted that the FTX Founder has not been arraigned on five of the now-expanded charges.</p><p class="MsoNormal">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.</p><p class="text-align-justify">The Aftermath of FTX So Far</p><p class="MsoNormal text-align-justify">FTX <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/" target="_blank" rel="follow">collapsed</a> in November last year following <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">a liquidation crisis</a> and a failed <a href="https://www.financemagnates.com/cryptocurrency/ftx-opts-for-capital-raise-as-alameda-research-winds-down-on-trading/" target="_blank" rel="follow">scramble for funds</a>, resulting in <a href="https://www.financemagnates.com/cryptocurrency/us-cftc-charges-bankman-fried-ftxcom-and-alameda-with-fraud/" target="_blank" rel="follow">the loss of over $8 billion</a> in FTX customers' deposits. Moreover, details emerged recently that Bankman-Fried and other former executives of FTX <a href="https://www.financemagnates.com/cryptocurrency/sbf-and-former-executives-of-defunct-ftx-received-32-billion/" target="_blank" rel="follow">received $2.2 billion</a> in loans and payments from FTX and related entities, mainly Alameda Research.</p><p class="MsoNormal text-align-justify">Bankman-Fried was <a href="https://www.financemagnates.com/cryptocurrency/sam-bankman-fried-arrested-in-the-bahamas-amid-us-criminal-charges/" target="_blank" rel="follow">arrested</a> in December 2022 and was subsequently extradited to the United States where he was granted bail on <a href="https://www.financemagnates.com/cryptocurrency/us-court-grants-bail-to-sam-bankman-fried-on-hefty-250m-bond/" target="_blank" rel="follow">a hefty $250 million recognizance</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-sam-bankman-fried-pleads-not-guilty-to-us-criminal-charges/" target="_blank" rel="follow">pleaded not guilty</a> to eight counts of charges. However, close associates of the embattled Founder <a href="https://www.financemagnates.com/cryptocurrency/sam-bankman-frieds-two-top-associates-plead-guilty-to-criminal-charges/" target="_blank" rel="follow">have pleaded guilty</a> and are cooperating with prosecutors. </p><p class="MsoNormal">Additionally, Nishad Singh, the former Director of Engineering at FTX, became the third associate of Bankman-Fried <a href="https://www.financemagnates.com/cryptocurrency/us-regulators-charge-ftxs-senior-executive-nishad-singh-with-fraud/" target="_blank" rel="follow">to plead guilty to fraud charges</a> in February. Both the United States Securities and Exchange Commission and the Commodity Futures Trading Commission charged Singh with misappropriating funds from FTX.com and aiding and abetting Bankman-Fried and Alameda Research in diverting FTX customer assets.</p><p class="MsoNormal">The FMA flags CFDs broker; AI in portfolio management, <a href="https://www.financemagnates.com/forex/news-nuggets-28-march-fma-flags-cfds-broker-ai-in-portfolio-management/" target="_blank" rel="follow">read today's news nuggets</a>.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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