FTX Founder Charged With Fraud, Conspiracy Crimes

FTX Founder Summoned Before Congress

(LibertySociety.com) – On December 12, the US attorney for the Southern District unsealed eight indictments against former FTX CEO Sam Bankman-Fried. Charges included wire fraud, conspiracy, and money laundering. US authorities believe the cryptocurrency expert perpetrated both federal financial crimes and campaign finance law violations.

The same day the United States revealed the court documents, Royal Bahamas Police Force officers arrested Bankman-Fried at his home in Nassau. The digital currency mogul said he plans to fight extradition to the US, but legal experts say his chances of success are slim. In fact, the attorney general in the Bahamas has said he planned to extradite him quickly from the island.

US prosecutors allege the former CEO worked with others to defraud FTX customers and lenders starting in 2019. Considering many of the charges are conspiratory in nature, The New York Times concluded there could either be more charges tying in the other alleged fraudsters or those individuals could already be working with the prosecution.

In addition to the criminal indictments, the Securities and Exchange Commission (SEC) filed its own lawsuit against Bankman-Fried. The civil case claims the businessman lied to FTX investors, customers, and lenders, and misused customer deposits. The agency’s investigation is still ongoing.

As to the donation charges, officials believe the defendant made donations to political campaigns using other people’s names, which violates the law.

If convicted on all charges, the 30-year-old could spend up to 115 years in prison from the criminal charges alone. According to reports, he was originally set to testify before the US House of Representatives Committee on Financial Services about the ongoing investigation into his company, but his arrest disrupted those plans. Forbes released a draft of his planned testimony.

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