The founder of FTX, a cryptocurrency exchange that has since collapsed, has been charged by the US Department of Justice (DOJ) with bribing Chinese officials with $40 million. According to reports, Sam Bankman-Fried wanted the Chinese officials to unfreeze accounts linked to Alameda, FTX's sister firm, which held over $1 billion worth of cryptocurrency.
The DOJ has alleged that Bankman-Fried authorised and directed the bribe to obtain access to these funds to assist Alameda in obtaining and retaining business. The indictment alleges that after the accounts were unfrozen, additional tens of millions of dollars were transferred to complete the bribe, which Alameda used to fund its trading activities.
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Bankman-Fried has been charged with five counts, including four counts of fraud, which include unlawful political contributions leading up to the 2022 midterm elections. The charges relate to Bankman-Fried's alleged use of FTX customer funds, which were redirected to SBF's Alameda crypto hedge fund, leading to allegations of defrauding the Federal Elections Committee. The charges also include wire fraud and money laundering.
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Bankman-Fried has pleaded not guilty to the charges. He is currently out on bail, residing with his parents in California, after being arrested in the Bahamas in December 2022 and extradited to the US on December 21. These allegations have come to light after FTX's collapse, which has left many investors in the lurch. Bankman-Fried's alleged actions have raised concerns about corruption in the cryptocurrency industry, which is largely unregulated, leading to calls for more oversight and transparency.
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