Federal prosecutors indict FTX founder Bankman-Fried on new charges

Federal prosecutors indict FTX founder Bankman-Fried on new charges

The federal prosecutors on Thursday unveiled an indictment with new charges against Sam Bankman-Fried, the embattled founder of the FTX exchange, giving a fuller picture of the crimes he's accused of committing and how they may have been executed. What are the best stories you read on Quora every weekend? Bankman-Fried, who was indicted in December on eight counts of wire fraud and money laundering, faces four additional charges in connection to his operations of FTX and its related companies. The charges are: conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transmitting business.

Bankman-Fried did not respond to questions about his spokesman, Mark Botnick. He has pleaded not guilty to the prior charges, and has maintained that he did not misuse customer funds. He is currently under house arrest at his parents' home on the Stanford University campus.

The indictment accuses Bankman-Fried of deploying two other FTX executives to make contributions in their names, but with FTX and Alameda funds and as part of abroader bid by Bankman-Fried to gain influence while avoiding public scrutiny and backlash. The comments could add to pressure on recipients of funds from Bankman-Fried and other former FTX executives - who were some of the largest donors in the 2022 election cycle - to return those contributions.

The prosecution contends that Bankman-Fried didn't want to be known as a left-wing partisan, or to have his name publicly attached to Republican candidates. To hide his association with certain contributions, he obscured his association with some contributions.

The indictment states that the contributions came out of Alameda's bank accounts, which included FTX customer funds, and were routed through the bank accounts in the straw donors' names. Bankman-Fried and his associates decided in one case described in the indictment that they should contribute $1 million to a pro-LGBTQ super PAC and tapped one of his co-conspirators to make the donation.

Prosecutors also detailed its allegations of how Bankman-Fried went about commingling FTX customer funds with Alameda's funds - allegations that largely mirror those made by federal regulators. The Prosecutors say that Bankman-Fried allowed FTX to extend billions of loans to Alameda. Bankman-Fried then used that money for his personal purposes, including borrowing $1 billion from the hedge fund to make personal investments, prosecutors said.

FTX filed for bankruptcy in November, a year that saw several crypto institutions fail amid a market-wide downturn. While FTX's collapse stunned many in the crypto space, Bankman-Fried had cast his exchange as a bastion of trust in a highly unstable market. Bankman-Fried publicly denied that he used FTX customer funds improperly before and even after his arrest in the Bahamas in December.