The founder and former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, is facing a new 13-count indictment by United States authorities.
According to a court filing by US Attorney Damian Williams, one of the new charges against Bankman-Fried includes an alleged $40 million bribe to a Chinese government official in a new superseding indictment.
In section 105 of the filing, the lawsuit claims that Bankman-Fried and other related parties “directed and effected the transfer of at least approximately $40 million in cryptocurrency intended for the benefit of one or more Chinese government officials.” According to the allegations, the transaction was made in order to influence and induce Chinese officials to unfreeze cryptocurrency accounts at FTX affiliate Alameda Research. The accounts reportedly contained more than $1 billion worth of cryptocurrency.
According to the filing, Chinese authorities froze certain Alameda accounts at “two of China’s largest cryptocurrency exchanges” in or around early 2021. FTX was aware of the freeze and attempted various methods to unlock the accounts, including attempting to transfer cryptocurrency to fraudulent accounts in an effort to circumvent China’s freeze orders.
“After months of unsuccessful attempts to unfreeze the accounts, Samuel Bankman-Fried argued with others and ultimately agreed to and directed a multi-million dollar bribe to try to unfreeze the accounts,” the court filing states. After the accounts were unfrozen by order of Bankman-Fried, Alameda used the cryptocurrencies to finance other commercial activities, the US government discovered.
It appears that it is unclear which Chinese exchanges Alameda was using in early 2021, as China officially banned cryptocurrency exchanges from serving the country in 2017. As we previously told you, China imposed a blanket ban on cryptocurrencies in September 2017. 2021.
FTX founder Bankman-Fried faces trial set for October 2, 2023 on criminal charges of alleged theft of billions of dollars in FTX client funds provided through Alameda Research. He is also accused of having made large illegal political donations. He has pleaded not guilty to eight criminal charges, which could carry up to 115 years in prison if convicted.
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