Crypto mogul Sam Bankman-Fried (SBF) indicted over alleged $100M illegal contributions as he awaits trial in notorious Brooklyn jail. By Sunil Sharma 6 hours ago Updated 6 hours ago
Fox Business reporter Eleanor Terrett recently reported that the U.S. Department of Justice’s Criminal Division filed a superseding indictment against FTX founder Sam Bankman-Fried. The indictment alleges that Bankman-Fried used more than $100 million in illegal campaign contributions, bringing more clouds of suspicion over the cryptocurrency industry.
🚨NEW: @DOJCrimDiv files superseding indictment against @SBF_FTX THAT alleges Bankman-Fried directed more than $100M in illegal campaign contributions.
Full indictment here:https://t.co/yLZch4Ccwp
— Eleanor Terrett (@EleanorTerrett) August 14, 2023
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Financial manipulations and high-end politics
The indictment details a series of financial misappropriations by Bankman-Fried, including the embezzlement of FTX customer deposits. He allegedly directed billions in stolen funds towards various ventures, including his enrichment, supporting FTX’s operations, funding speculative investments, and, most notably, massive campaign contributions to the Democratic and Republican parties. According to the filing, the motive behind these contributions was to influence cryptocurrency regulations in his favor.
Furthermore, during the turbulence of early November 2022, as FTX faced an exodus of customers trying to withdraw their funds, Bankman-Fried was accused of making false reassurances. It’s suggested that he aimed to retain customer deposits by slowing their withdrawals and giving false statements to Alameda’s lenders, preventing them from recalling due loans.
A masked savior with hidden agendas
Until the fall of FTX in late 2022, Bankman-Fried painted a picture of being the cryptocurrency industry’s beacon. He flaunted FTX’s profits, initiated venture investments, made acquisitions to aid struggling market players purportedly, and lobbied extensively in the political arena. But, as the indictment suggests, behind this facade was a multi-billion-dollar gap in FTX’s finances, attributed to his alleged misappropriation.
According to a Reuters report, recent events took another dramatic turn when U.S. District Judge Lewis Kaplan decreed that Bankman-Fried, awaiting his fraud trial, would be incarcerated in a Brooklyn jail. The facility, notorious for its subpar conditions, has previously housed high-profile inmates, including Ghislaine Maxwell and Honduras’ former president.
According to the report, the defense team representing Bankman-Fried had allegedly appealed to Judge Kaplan against the decision to imprison the once-billionaire 31-year-old. Their contention was rooted in the ongoing “staffing crisis” at MDC, expressing concerns that due to a shortage of guards, Bankman-Fried might face difficulties being escorted to a room where he could use computers to review the prosecutors’ evidence stacked against him.