• Sam Bankman-Fried, the co-founder of the now-bankrupt FTX exchange, has been accused of bribing Chinese officials with $40 million in cryptocurrency.
• A federal grand jury in Manhattan issued a revised indictment accusing Bankman-Fried of authorizing the transfer of funds intended to benefit one or more Chinese government officials.
• US District Judge Lewis Kaplan has scheduled a court hearing for Thursday to arraign Bankman-Fried on the new charges, which include violations of the Foreign Corrupt Practices Act and fraud.
Alleged Bribery Scheme
According to a Reuters report, new charges have been unveiled against Sam Bankman-Fried, the co-founder of the now-bankrupt FTX exchange. Bankman-Fried, who founded one of the largest cryptocurrency exchanges in the world, has been accused of bribing Chinese officials. As per the report, a federal grand jury in Manhattan has issued a revised indictment accusing Sam Bankman-Fried of authorizing the transfer of $40 million in cryptocurrency intended for the benefit of one or more Chinese government officials.
Transfer Of Funds
The alleged bribe was intended to unfreeze accounts belonging to Alameda Research, Sam Bankman-Fried’s hedge fund, which Chinese authorities had frozen. The accounts reportedly held more than $1 billion worth of cryptocurrency. Per the report, Bankman-Fried transferred the bribe payment around November 2021 from Alameda’s main trading account to a private cryptocurrency wallet. This transfer allegedly enabled the accounts to be unfrozen by the Chinese authorities. According to prosecutors, after these accounts were unfrozen, Bankman-fried is accused of authorizing a transfer of tens of millions dollars’ worth additional cryptocurrency to complete his bribe payment scheme.
Legal Woes
According to Reuters, prosecutors have asked Bankman Fried to be arraigned on a new 13 count indictment which includes charges such as orchestrating an illegal campaign donation scheme and conspiring violate Foreign Corrupt Practices Act (FCPA). The FCPA is United States law that makes it illegal for US citizens bribe foreign government officials win business; something what is accused FTX co founder having done with forty million dollars transferred from FTX account into private wallet owned by him and Belize company linked him under name Big bull Capital Ltd., according Bloomberg Businessweek article published March 2021.. In addition this charge also faces several fraud charges allegedly funneling money from FTX account into Almeda’s main trading account .
Court Hearing
US District Judge Lewis Kaplan has scheduled court hearing for Thursday arraign Sam bank man fried on these new charges added case last month .Bank man Fried has yet been arraigned on these new charges .As per Reuters ,Sam bank man Fried nor any other parties involved have not commented publicly regarding this fresh allegation .
Conclusion
This case highlights how serious governments are taking issue bribery corruption involving digital assets .It set example those found guilty face harsh penalties regardless social standing or wealth accumulated their activities within industry .No matter outcome ,it sure make all participants think twice before engaging similar practices future time frame .