More trouble for Sam Bankman-Fried. The FTX co-founder and former CEO has been indicted on four new criminal charges involving add another 40 years to his potential — and already hefty — prison sentence. This is how he reveals it a document from the federal court in New York in charge of your case (via CNBC).
The new accusations against SBF were known through what is known in the United States justice system as superseding indication. This happens when evidence or information appears that justifies the addition of charges, beyond those presented at first.
As it is, the US Department of Justice is now accusing Sam Bankman-Fried of 12 crimes of fraud and conspiracy, instead of the original 8. This makes the panorama even more complicated for the defense lawyers of the once young wonder of the world of cryptocurrencies, who today remains under house arrest after being granted bail valued at 250 million dollars.
The new accusations against Sam Bankman-Fried deepen several of those that already existed, but add more edges to his criminal record. Basically, the four charges that are added to his file expose how he diverted billions of dollars from his clients to enrich himself and, simultaneously, finance the operations of FTX and Alameda Research, sponsor speculative investments and make donations. On this last point, it stands out making illegal political contributions and the attempted fraud of the United States Federal Election Commission (FEC).
Sam Bankman-Fried accumulates a possible sentence of more than 150 years in prison
That Sam Bankman-Fried and FTX made millionaire contributions to political campaigns is not news. In fact, bankruptcy managers exchange of cryptocurrencies want to recover that money, since it belongs to their users. However, the new court document against the businessman reveals a direct violation of federal election finance laws.
“While using Alameda to siphon funds from FTX clients to political causes, Sam Bankman-Fried became one of the largest publicly-informed political donors for the 2022 midterm elections. It stayed there,” explains the accusation.
It adds that, to prevent certain contributions from being visible, completed them on behalf of two other executives of the crypto firm. In other words, he not only carried them out with funds that did not belong to him, but he also used the identity of his colleagues to try to stay out of possible media exposure.
The document does not reveal the names of those involved. However, it is speculated that it is nishad singhformer director of engineering at FTX, and Ryan Salame, co-CEO of the subsidiary of the exchange of cryptocurrencies in the Bahamas.
The latter was not only in the news for betraying Sam Bankman-Fried to the island authorities, prior to bankruptcy, but also for his millionaire contributions to political campaigns linked to the Republican Party. Not a minor fact, considering that his partner was one of the largest donors to exponents of the Democratic Party.
All criminal charges facing SBF
The 12 criminal charges that the Department of Justice has formally filed against Sam Bankman-Fried are these:
- Conspiracy to commit wire fraud against FTX customers;
- Wire fraud on FTX clients;
- Conspiracy to commit fraud against FTX clients in connection with the buying and selling of derivatives;
- Fraud of FTX clients in connection with the buying and selling of derivatives;
- Conspiracy to commit securities fraud against investors in FTX;
- Fraud of securities to investors in FTX;
- Conspiracy to commit wire fraud against Alameda Research lenders;
- Alameda Research Lender Wire Fraud;
- Conspiracy to commit bank fraud;
- Conspiracy to operate a money transfer business without a license;
- Conspiracy to commit money laundering;
- Conspiracy to make illegal political contributions and defraud the FEC.
It is worth clarifying that, if found guilty of the 8 original charges, he accumulated a sentence of up to 115 years in prison. With the 4 accusations added in the last hours, a full sentence would raise it to 155 years. Whatever the case, Sam Bankman-Fried has it harder than ever to avoid a verdict that will mean spending the rest of his life behind bars.