A yet-to-be-publicized indictment in a New York federal court classifies SBF as both FTX and associated Alameda Research accusing him of committing fraud through his hedge fund. The co-founder also allegedly violated federal campaign finance laws by making secret donations to a congressional super PAC using the names of two executives. A source told CNBC that if the SBF were found guilty, the additional charges would warrant an additional 40 years in prison.
SBF on December 12 in the Bahamas arrested and with extradition to the USA He quickly abandoned his plans to fight together. He has already pleaded not guilty to federal charges involving multiple radio frauds. Also, Securities and Exchange from the Commission (SEC) a civil lawsuit and from the Commodity Futures Trading Commission (CFTC) also facing a lawsuit. Prosecutors claim that Bankman-Fried defrauded investors of about $2 billion, but the former CEO believes he never tried to commit fraud and was not criminally responsible for FTX’s downfall. Two executives, Caroline Ellison and Zixiao “Gary Wang” have admitted to their own fraud charges.
FTX co-founder Sam Bankman-Fried faces four new charges
FTX isn’t alone in falling out of favor. Binance, Celsius And Terraform labs Like other major crypto brands, they are also battling charges of varying degrees (for themselves or their former leaders), litigation, and bankruptcy. However, FTX and its former CEO remain the most prominent examples of the crypto industry’s turmoil – new accusations will likely solidify that position.
Other indictments, federal government crypto assets and reflects his growing enthusiasm for crashing cryptocurrency. While House and Senate politicians hope to regulate the industry more tightly, SEC, CFTC And Department of the Treasury Institutions like these are pushing for higher fees and clearer rules.