Former FTX Co-Founder, Sam Bankman-Fried, Accused of Paying $40 Million in Bribes to Unfreeze Alameda Research Accounts by Chinese Government Official
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Federal prosecutors have charged Sam Bankman-Fried, a former co-founder of FTX, with paying $40 million in bribes to a Chinese government official. However, the alleged bribery was an attempt to unfreeze accounts belonging to Alameda Research, SBF’s hedge fund, after they were frozen by Chinese police in November 2021.
SBF Charged With Funneling $40M In Crypto To Bribe CCP Officials
Federal prosecutors in Manhattan have hit FTX founder Sam Bankman Fried ("SBF") with a new 13-count indictment accusing him of funneling $40 million in cryptocurrency to 'one or more' Chinese government officials.. pic.twitter.com/MZsb979tZB
— ZOMPOCS (@zompocs) March 28, 2023
SBF and others attempted to unfreeze the accounts using various ways but were unsuccessful. SBF reportedly authorized the transfer of at least $40 million in cryptocurrency to a Chinese official in exchange for the accounts being unfrozen.
It is also worth noting that the accounts held approximately $1 billion worth of cryptocurrency, and the funds from the alleged bribe were used to support Alameda’s loss-generating trades, which the government has accused of being fraudulent.
FTX and Alameda Research Collapse, SBF Faces Charges and Allegations of Bribery
FTX and Alameda Research ran into financial difficulties, which led to their bankruptcy in November 2022. This generated concerns, leading to SBF facing accusations from the commodities futures trading commission, the Securities and Exchange Commission, and a federal indictment. SBF was later arrested.
The collapse of #FTX and Alameda Research marks the seventh major crypto bankruptcies crash since May of this year. Enough is enough!
The SEC must continue to lead regulation of the U.S. crypto market, and Congress must do its part to provide them with the resources they need. pic.twitter.com/obT4WPM53r
— U.S. House Committee on Financial Services (@FSCDems) December 13, 2022
SBF reportedly paid $40 million in bribes to a Chinese government official to unfreeze Alameda Research accounts, according to fresh evidence. This development came after US officials charged Binance with facilitating terrorist funding and breaching US derivatives law.
SBF has agreed to additional bail restrictions that limit his access to technology, after Judge Lewis Kaplan’s closure of his electronic access. SBF has denied any participation in the accusations brought against him, but the judge is not taking any risks.
FTX and Alameda Research had financial difficulties, resulting in allegations against SBF. According to recent information, SBF reportedly paid bribes to unfreeze Alameda’s accounts. FTX is presently in bankruptcy court, and SBF has agreed to additional bail restrictions restricting his access to technology.
