U.S. federal prosecutors have tot up yet another charge to the long inclination that fallen cryptocurrency founder , Sam Bankman - Fried , is facing . The former chief executive officer of crypto exchange FTX is being indict over allegation that he bribed Chinese government officials to the melodic phrase of more than $ 40 million dollar mark as part ofhis shady financial dealings . The news show was first reportedby Reuters , and comes froma legal documentfiled and unseal Tuesday .
The superseding bill of indictment aver that Bankman - Fried ( or SBF as he ’s commonly promise ) directed X of millions of dollar to regulative officials in China so as to get certain accounts unfrozen . China banned cryptocurrency transactions in 2021 , and before that crypto activities were highly restricted and heavy regulated . In the crackdown preceding the straight-out forbiddance , the res publica ’s government freeze two trading accounts held by Alameda Research , FTX ’s sister hedge fund , that were maneuver on Taiwanese exchange , per the young filing .
Combined , the accounts allegedly bind about $ 1 billion worth of crypto . SBF and his lackey reportedly test to get the account unfrozen through various means including seek undercover transfers , appealing to the Formosan authorities , and employ lawyers to help . None of those things worked , according to the indictment .
Sam Bankman-Fried is now facing 13 federal charges in New York district court.Photo:John Minchillo(AP)
So , eventually , Bankman - Fried and company swivel to bribery , per the Modern charge . “ After month of failed attempts to dethaw the Accounts [ SBF ] discussed with others and ultimately agreed to and directed a multi - million - dollar payoff to seek to unfreeze the accounts , ” read the document . The prosecutors tie that allegation to a $ 40 million transfer from Alameda ’s main account to an anonymous crypto wallet . “ At or around the time of the $ 40 million bribe payment , the Accounts were unfrozen , ” prosecutors noted .
Prosecutors are arguing that this activity dishonour the anti - bribery supply of theForeign Corrupt Practices Act . Under the FCPA , it ’s illegal for a U.S. person or pot to pay off foreign official to maintain commercial enterprise relationships . penalty for violatingthe FCPA and its anti - bribery provisions include fine of up to $ 2 million for business organization and $ 250,000 for someone .
The new charge is the thirteenth one that SBF has been indict on . His trail is presently scheduled to begin October 2 , 2023 — though the defenseattorneys have requested a wait .
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CorruptionPoliticsSam Bankman - FriedU . second . Federal
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