The disgraced creator of the collapsed cryptocurrency exchange service FTX is facing several additional accusations connected to suspected unlawful Political Contributions.
It has been revealed in newly filed court records that former FTX CEO Sam Bankman-Fried is being charged with fresh counts of conspiracy to make over 300 illicit Political contributions.
Bankman-Fried, who is already facing accusations of allegedly cheating clients and mishandling billions of dollars in their cash, reportedly avoided political contribution limitations by using “straw contributions.”
The political contributions may be traced back to Alameda Research, the trading part of the FTX ecosystem, according to court documents. Bankman-Fried is being investigated for potentially lending billions of dollars in consumer funds to Alameda in violation of banking laws.
“The monies utilized for these political contributions came from Bank Accounts in Alameda and included amounts put by FTX clients.
The defendant was aware of campaign financing regulations, yet he and others conspired to hide the real origin of the money by moving it from Alameda’s bank accounts, which included FTX customer monies, to bank accounts in the name of the contributors, and then swiftly from those people’s bank accounts to political campaigns.
Once its main asset failed and it was ordered to suspend client deposits and withdrawals, FTX filed for bankruptcy in November.
Bankman-Fried is now free on bail and awaiting trial on his first allegations. If found guilty of the initial charges, he could spend almost a century in jail.
Federal authorities including the SEC and CFTC are suing the ex-billionaire in civil court. But, such lawsuits will be placed on hold until the conclusion of Bankman-Fried’s criminal prosecution.
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