Unsealed criminal allegations against Sam Bankman-Fried include conspiracy to defraud the United States, wire fraud, securities fraud, and money laundering. These charges could land SBF in jail for a very long time. As of now, he is being held in a Bahama jail and awaiting extradition to the United States.
Sam Bankman-Fried, the founder and former CEO of FTX, the second-largest cryptocurrency exchange, was issued an eight-count criminal indictment on Tuesday. The Securities and Exchange Commission also filed a supplementary complaint against him. The case has been assigned to an Obama appointee and U.S. District Judge Ronnie Abrams. It consists of four counts of fraud and four counts of conspiracy, including breaking campaign finance rules. “We charged that Bankman-Fried violated federal campaign finance laws by causing tens of millions in illegal campaign contributions to made to candidates and committees associated with both Democrats and Republicans,” U.S. Attorney Damian Williams for the Southern District of New York said on Tuesday. “These contributions were designed to look like they were coming from wealthy co-conspirators, when in fact, when contributions were funded by Alameda Research with stolen customer money.”
Tuesday saw the filing of a third, distinct complaint against Bankman-Fried by the Commodity Futures Trading Commission. It claims that the approximately $8 billion in client deposits that were missing at the time of FTX’s bankruptcy were caused by his attempt to transfer FTX customer funds to Alameda.
After being detained by Bahamian officials on Monday night, the 30-year-old was charged with a federal crime. U.S. Attorney Damian Williams for the Southern District of New York referred to the FTX founder’s scam as “one of the largest financial frauds in America’s history” during a press conference on Tuesday in the afternoon.
Sam Bankman-Fried, often called SBF, was arrested by the Bahamian authorities, on Monday evening, after U.S. prosecutors filed charges against him. He was expected to testify before a Congressional committee, on Tuesday. FTX, a former massive crypto exchange collapsed last month. FTX filed for bankruptcy on November 11, after SBF resigned as CEO. The 30-year-old entrepreneur had become a billionaire after starting the exchange but fell from grace after the company dramatically fell. Crypto web fans are very upset.
The U.S. Attorney for the Southern District of New York presented a sealed indictment to the island government of Bahamas. SBF is expected to be extradited to the U.S. and face a trial.
Sam Bankman-Fried’s spokesperson Mark Botnick confirmed that the former CEO of FTX has hired Mark Cohen as a defense attorney to represent him. The New York based lawyer has been part of the team that defended high profile persons including disgraced British socialite and convicted sex trafficker Ghislaine Maxwell, in the past.
“Although Mr. Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr. Bankman-Fried about the actions that’ve harmed over one million people, and wiped out the hard-earned life savings of so many,” MaxineWaters said in a statement Monday evening.
Forbes Magazine reported, Bankman-Fried’s fortune was estimated around $17 billion this year.
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