Former FTX CEO Sam Bankman-Fried To Face Four New Criminal Charges Report

Former FTX CEO Sam Bankman-Fried To Face Four New Criminal Charges Report

Former CEO of collapsed crypto exchange FTX Sam Bankman-Fried has been slapped with four new criminal charges accusing him of conspiring to make illegal political donations and to commit bank fraud, according to a BBC report. The report adds that Bankman-Fried has already pleaded not guilty to defrauding customers and investors.

Last year, FTX declared bankruptcy, making it impossible for many consumers to withdraw their money. Bankman-Fried now faces a total of 12 criminal charges, the report said. 

In the latest charges, prosecutors claimed that Bankman-Fried and two other former FTX executives planned to donate tens of millions of dollars to sway US lawmakers into passing laws that would benefit the company, the report added. 

Also Read: FTX Objects New Bankruptcy Probe By US Justice Department: Report

Prosecutors claim that the donations were made using corporate funds or “straw” donors, which allowed Bankman-Fried to exceed contribution restrictions.

They asserted that Bankman-Fried instructed one executive to support Republicans while instructing the other to support Democrats, with many of these donations coming from his Alameda Research hedge fund, which also included money from FTX customers.

In response to allegations that he used FTX customer deposits to support Alameda Research, purchase real estate, and give to political campaigns, Bankman-Fried has already entered a not-guilty plea, the report said.

Also Read: FTX Crash Aftermath: Analyst Says Important Crypto Regulations Incoming

In December, after his arrest, Bankman-Fried was freed after posting a $250 million (£208 million) bail. But if found guilty, he could spend more than a century in jail. The trial date was scheduled for October 2. 

FTX filed for bankruptcy in November last year. It left about 9 million customers and investors in the company facing unimaginable losses of billions of dollars. 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *