More trouble for Sam Bankman-Fried. The former CEO of FTX has added a new accusation to the extensive list that already has him on the ropes and that could lead him to spend the rest of his life in prison. It is that, according to the prosecutors in charge of his case, the businessman diverted millions of dollars with which bribed Chinese government officials.
According to collect Reuters, the US court now accuses SBF of conspiring to violate the Foreign Corrupt Practices Act (FCPA). It prohibits US citizens or companies from bribing official officials of other countries in order to win or retain business. The criminal charge is added to another 12 that the once young wonder of the world of cryptocurrencies already dragged.
According to authorities, Sam Bankman-Fried transferred around 40 million dollars in cryptocurrencies Chinese officials to release Alameda Research accounts that had been frozen by the Asian giant. It is estimated that the wallets in question stored about $1 billion in crypto assets.
The aforementioned report indicates that the payment of the bribe was made in two tranchesin November 2021. A portion of the assets was transferred from the main account of trading from Alameda Research to a wallet of private cryptocurrencies, before the frozen accounts were released. The remainder of the payment, valued at tens of millions of dollars, was completed after the “rescue.”
A bribe to Chinese officials, the new headache for Sam Bankman-Fried
The indictment of bribing Chinese officials couldn’t come at a worse time for Sam Bankman-Fried. Not so much because of the accumulation of accusations against him – after all, the 12 previous charges already earned him a potential punishment of more than 150 years in prison – but because it occurs at a time of great tension between the United States and China.
With the growing accusations of espionage and interference from China against the North American country —whether with stratospheric balloons, TikTok or any other way—, transferring millions of dollars in cryptocurrencies to officials of that country does not leave SBF standing well in its crusade to prove that it is innocent.
Judge Lewis Kaplan has scheduled a hearing for this Thursday to add this new accusation to the other charges that Sam Bankman-Fried is already dragging. It is worth noting that, formally, the businessman is still charged with the original accusation of 8 crimes.
Last February, prosecutors added another four counts of fraud and conspiracy against the former CEO of FTX through what is known in US justice as superseding indication. However, it has not yet been processed by them. This action is expected to take place this week. also incorporating the alleged bribery of Chinese officials.
Trying to evade prison before trial
Another point to note is that yesterday, Monday, Sam Bankman-Fried’s lawyers and prosecutors reached an agreement on the new conditions of his bail. This occurred after Judge Kaplan considered the possibility of send him to prison until the trial begins, scheduled for October, due to concerns that it could influence witnesses. To avoid waiting behind bars, the businessman’s representatives agreed to limit their communications to a mobile without internet access and a computer with limited connectivity.