Sam Bankman-Fried faces new charges

Failed FTX CEO Sam Bankman-Fried (SBF) faces new criminal charges, including conspiracy to commit bank fraud. Writes about it The Block.

The number of crimes incriminated to him increased from 8 to 12. A conspiracy to manage an unlicensed money transfer business was also added to the clarified position of the court.

Regarding banking fraud, the document states that SBF “intentionally and knowingly” informed the financial institution that the account was for trading and market making. In reality, it was used to receive and transfer funds from the exchange’s clients.

In the aggregate of all the previous points, Bankman-Fried faces up to 115 years in prison.

In December 2022, the court reported that SBF was accused of including:

  • colluding with partners to deceive, misappropriate funds from clients of the trading platform and use them to pay expenses and debts of Alameda Research;
  • in money laundering;
  • in violation of US campaign finance laws.

The increase in points followed Bloomberg’s report about the readiness of the former CTO FTX Nishad Singh plead guilty to fraud.

The CTO of the platform was involved in the transfer of political donations in the United States. Since 2020, Singh has donated over $9.3 million to Democratic candidates. He also received a loan of hundreds of millions of dollars from Alameda.

The new indictment alleges that Bankman-Fried made certain political contributions on behalf of two other FTX executives. The SBF tried to hide interactions with Republican candidates because he was known to be on the left.

In December 2022, two other associates of Bankman-Fried, ex-CEO of Alameda Research Caroline Ellison and co-founder of the exchange Gary Wang, pleaded guilty to charges related to the collapse of FTX. SBF did not make a deal with the investigation.

In February 2023, the court did not rule out the return of Bankman-Fried to prison.

Prosecutors have previously requested a change in house arrest conditions for the ex-CEO of FTX. Law enforcers suspected SBF of using the Signal messenger to send encrypted messages to a witness. Next, he was caught using a VPN.

Bankman-Fried was arrested on December 12, 2022 in the Bahamas at the request of the US government. The court released him on $250 million bail.

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