FTX founder Sam Bankman-Fried
Crypto Trends & News

US accuses the FTX founder Sam Bankman-Fried of bribing Chinese officials

-If convicted of all crimes, Bankman-Fried faces a sentence of more than one hundred years in prison.

-The FTX administrator is studying reopening the platform after its bankruptcy.

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United States authorities unveiled new charges on Tuesday against the founder of the ill-fated FTX cryptocurrency platform, Sam Bankman-Fried, for allegedly paying multimillion-dollar bribes to Chinese officials.

According to the United States Attorney’s Office for the Southern District of New York, Bankman-Fried would have transferred at least $40 million to one or more officials of the Chinese Government so that, in exchange, they would unlock accounts of his investment fund, Alameda Research, which had more than 1 billion dollars in cryptocurrencies.

The new accusations add to a long list of charges of fraud and money laundering that weigh against the young businessman, who has pleaded not guilty and is under house arrest in his parents’ home after agreeing to an unprecedented bail of 250 million dollars.

Last month, prosecutors had already expanded the original eight charges with four more, including some linked to an alleged system of illegal political donations to Democrats and Republicans organized by Bankman-Fried to try to gain influence in Washington.

Frozen Accounts in China

The judge in charge of the case, Lewis Kaplan, published an order this Tuesday calling for a hearing for next Thursday, in which all the new charges will likely be read to the accused.

In the new indictment, the Prosecutor’s Office details how in November 2021 the Chinese authorities froze as part of an investigation accounts belonging to Alameda Research, the investment arm of FTX, and assures that, after trying “numerous methods” to unlock them, Bankman -Fried opted for a bribe.

According to the text, the founder of FTX and others in the company transferred at least $40 million in cryptocurrencies to one or more Chinese officials and thus managed to unlock the accounts.

FTX, which was one of the largest cryptocurrency platforms in the world, quickly collapsed last November after many users rushed to withdraw their funds amid reports that questioned the company’s solvency.

More Than a Hundred Years in Prison

As a result of that collapse, US authorities accused Bankman-Fried and other officials at FTX and Alameda Research of a gigantic fraud in the management of their business, which had turned the 31-year-old businessman into a multimillionaire and one of the most influential figures. in the world of cryptocurrencies.

Bankman-Fried – often known by his initials SBF – was extradited to New York in December from the Bahamas, the company’s headquarters and where he resided.

For now, the start of the trial against him is scheduled for next October, and, if convicted of all the crimes of which he is accused; Bankman-Fried faces a sentence of more than one hundred years in prison.

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