In a new indictment unsealed on Tuesday, officials accused Sam-Bankman Fried of bribing Chinese officials to release frozen assets.
Federal prosecutors have accused Sam Bankman-Fried (SBF), the former CEO of failed cryptocurrency exchange FTX, of trying to bribe “one or more” Chinese government officials with $40 million, with the goal of releasing $1 billion in frozen digital assets. his hedge fund, Alameda Research.
Bankman-Fried has faced eight counts of fraud and conspiracy and has yet to be tried on five others. He could face more than 155 years in prison if convicted on all counts – a trial is scheduled for October.
The new indictment against Bankman-Fried, unsealed by New York’s Southern District Court on Tuesday, alleges that Bankman-Fried masterminded a fraudulent scheme to steal deposits from FTX with the intent of financing risky bets at Alameda Research. Additionally, SBF donates to American politicians without proper documentation, all while living in the Bahamas. FTX’s collapse and subsequent bankruptcy left the industry reeling, as it was one of the largest and most trusted exchanges.
SBF remains under house arrest at his parents’ home in Palo Alto, California, with restricted movement. Three of his former business partners, including FTX founder Gary Wang and Alameda Research CEO Caroline Ellison, have pleaded guilty to their respective charges.
On Tuesday, Judge Lewis A. Kaplan approved a modification of Bankman-Fried’s bail conditions to limit access to the internet. This move follows concerns about the use of virtual private networks, which mask the location of internet connections. Bankman-Fried will be allowed to use the VPN only to access the database to help prepare the defense, via a laptop provided by the attorney under the modification.