FTX co-founder and former CEO Sam Bankman-Fried is facing yet another criminal charge, this time for allegedly bribing a Chinese government official with $40 million in cryptocurrency.
According to federal prosecutors, this marks the 13th indictment against Sam Bankman-Fried in a case that continues to draw attention from the cryptocurrency and financial industries.
On Tuesday, the Southern District Court of New York declared a the newly unsealed indictment. Bankman-Fried, who posted $250 million bail, has entered a not guilty plea to eight criminal counts related to fraud and conspiracy. However, he has not been tried in five additions.
Prosecutors say Sam Bankman-Fried is accused of masterminding one of the biggest financial frauds in US history.
The charges relate to allegations that he coordinated a massive scheme to steal deposits from the cryptocurrency exchange, FTX.
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Bankman-Fried faces new charges of conspiracy to violate the Foreign Corrupt Practices Act, which prohibits U.S. citizens from bribing foreign government officials in exchange for business.
According to federal prosecutors in Manhattan, Bankman-Fried directed payment to publish a frozen account belonging to the hedge fund, Alameda Research, which held over $1 billion in cryptocurrency.
The payment is transferred from Alameda’s main trading account to a personal cryptocurrency wallet, and then returned to the account.
In light of the new 13-count indictment, prosecutors have asked for the former big boss FTX arraigned, and a court hearing has been scheduled for Friday by District Judge Lewis Kaplan.
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On Tuesday, Judge Kaplan also granted the authority new bail conditions for Bankman-Fried due to concerns about the use of messaging applications and virtual private networks. These conditions will impose severe restrictions on internet access.
Bankman-Fried will be allowed to use a VPN only to access the database to help the defense, but he will need supervision from a lawyer.
In addition, they will have access to two electronic devices: a closely monitored laptop and a phone for voice and text calls only. Other devices that allow voice communication or chat or internet access are strictly prohibited, as Kaplan said.
Crypto total market cap remains at the $1 level on the daily chart at TradingView.com
Bankman-Fried is currently under house arrest at her parents’ home in Palo Alto, California, with strict restrictions on her movements.
If found guilty of all charges, he faces up to 155 years in prison. A trial is scheduled for October.
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