US Prosecutors Accuse FTX’s Sam Bankman-Fried Of Utilizing $100M To Curry Political Favors

The drama surrounding FTX and founder Sam Bankman-Fried (SBF) continues to unfold nearly a yr after the crypto change collapsed. This time round, prosecutors are coming after the previous CEO for allegedly utilizing buyer funds to purchase the favor of politicians.

SBF Used Buyer Funds For Marketing campaign Contributions

The most recent indictment filed by america Division of Justice (DOJ) particulars how Bankman-Fried embezzled buyer deposits and used these stolen funds in direction of varied ventures, together with funding the political campaigns of a number of politicians within the Democratic and Republican events. 

In keeping with the submitting, SBF did this to foyer for crypto laws that might favor him and his firm. His plan was to get Congress and regulators to make legal guidelines and laws that make it simpler for FTX to simply accept clients’ deposits, consequently permitting his embezzlement to proceed with out getting observed. 

SBF additionally apparently broke a number of marketing campaign finance guidelines to maximise his affect on politicians through the use of straw donors as a few of these political contributions have been allegedly made within the names of FTX executives. The founder additionally made to hide the truth that the supply of those donations was buyer funds, as he directed that the client deposits be paid into the executives’ financial institution accounts, who then made the donations of their names. 

SBF had been publicly identified to make contributions to the Democratic celebration whereas secretly funneling funds to the GOP. He beforehand admitted that he made “vital” donations to each events earlier than the midterm elections final yr. 

On the time, the funds he reportedly donated totaled over $40 million, making him the seventh-highest political donor between 2021 and 2022. Nevertheless, the newest indictment submitting reveals that he may have effectively been the second-highest political donor with over $100 million in political contributions. 

Whereas SBF made these donations and portrayed himself because the “savior of the cryptocurrency business” (in reference to SBF bailing out crypto corporations that have been struggling financially), there have been gaps in FTX’s funds ensuing from his alleged misappropriation. 

FTT Token struggles as SBF case intensifies | Supply: FTTBUSD on

Sam Bankman-Fried Faces Seven Counts Of Fraud

Regardless of this newest revelation, prosecutors will now not be charging SBF with violation of marketing campaign finance guidelines. This determination was made to guard the US authorities’s extradition settlement with the Bahamas because the latter “didn’t intend to extradite the defendant on the marketing campaign contributions depend.”

In keeping with the newest indictment submitting, SBF now faces seven counts of economic fraud. These prices reduce throughout his misappropriation of funds that belonged to FTX clients and Alameda Analysis Collectors. He’s additionally charged with cash laundering. 

Final week, a US Choose ruled that SBF be remanded within the notorious Brooklyn Metropolitan Detention Middle (MDC), identified for its unfavorable residing situations. This ruling got here after SBF was discovered to have tampered with proof, and he’s anticipated to stay in custody till his trial set for October 2. 

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