Summary:
• Federal prosecutors have announced new indictments against Sam Bankman-Fried, alleging four additional criminal charges.
• The charges include conspiracy to commit bank fraud, operate an unlicensed money transmitter and defraud the United States.
• Prosecutors allege that Bankman-Fried corrupted the operations of cryptocurrency companies and utilized others to contribute to political movements without tying himself or his business entities to them.
Background
Federal Prosecutors have announced a new indictment of Sam Bankman-Fried with four additional criminal charges.This document alleging these new charges starts with the claim that “From at least in or about 2019, up to and including in or about November 2022, Samuel Bankman-Fried, a/k/a ‘SBF,’ the defendant, corrupted the operations of the cryptocurrency companies he founded and controlled.” In addition to the original counts that SBF is facing, prosecutors allege that he is also guilty of conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transmitter. Previously, SBF was charged with all of the following counts by the United States Southern District Court of New York, including: Conspiracy to commit wire fraud on customers; Wire fraud on customers; Conspiracy to commit wire fraud on lenders; Wire fraud on lenders; Conspiracy to commit commodities fraud; Conspiracy to commit securities fraud; Conspiracy to commit money laundering; And conspiracy to defraud the United States and violate the Campaign Finance Laws. These charges followed his arrest in December in the Bahamas after FTX exchange empire failed incredibly large failure. The industry is still reeling from both business impact as well as regulatory scrutiny since then.
New Allegations
The document with new charges alleges “Contrary to Bankman-Fried’s promises to FTX customers that the exchange would protect their interests and segregate their assets, Bankman-Fried routinely tapped FTX customer assets for his own private expenditures without disclosing risk”. In addition it states that while claiming publicly that FTX operated independently from Alameda’ s cryptocurrency trading and investments in other companies – by design reality was otherwise .
Illegal Donations
In addition illegal donations are now being further detailed with this indictment examining how SBF utilized others contribute political movements without wanting himself or businesses entities tied it . “Bankman-Fried caused substantial contributions be made support candidates major political parties across political spectrum” document alleges but didn’t want himself associated left leaning partisan Republican candidates so used others make contributions obscure association .
Consequences
If convicted these crimes carry penalties of up five years imprisonment each count fines restitution forfeiture significant amounts money fines compensatory damages loss profits etc .