• Sam Bankman-Fried, the former crypto executive behind FTX, is facing bribery charges for attempting to bribe Chinese officials with $40 million to unfreeze $1 billion held in his secondary company Alameda Research.
• He is now facing 13 separate counts in court and US attorney Damian Williams has thrown his two cents into the mix.
• Court documents purport that the assets held within Alameda were frozen as part of an ongoing investigation into a particular “Alameda trading counterparty.”
Sam Bankman-Fried Facing Bribery Charges
Former crypto executive Sam Bankman-Fried, who runs popular digital currency trading platform FTX, has been charged with violating the Foreign Corrupt Practices Act by allegedly attempting to bribe officials from China. He is now facing approximately 13 separate counts in court.
Attempted Bribe
Prosecutors claim that Sam Bankman-Fried attempted to send money to Chinese officials so they would unfreeze roughly $1 billion under his name held through his secondary company Alameda Research, a crypto trading hedge fund. The indictment reads as follows: „In or about 2021, Samuel Bankman-Fried, a/k/a/ SBF, the defendant, authorized and directed a bribe of at least $40 million to one or more Chinese government officials.“
Investigation Into Trading Counterparty
Court documents purport that the assets held within Alameda were frozen as part of an ongoing investigation into a particular “Alameda trading counterparty,“ and that SBF and several of his constituents made various attempts to get the money unlocked for private use. Some of these methods included retaining attorneys to advocate in the country for funds to be unfrozen and communicating with Chinese exchanges.
Damian Williams Comments
US attorney for the Southern District of New York Damian Williams has commented on this case saying: „We are hard at work and will remain so until justice is done.“
Conclusion
Sam Bankman-Fried is alleged to have tried to have the money unfrozen for months but with no success at first. It remains unclear what outcome this case will bring but it certainly paints a worrying picture for those involved in cryptocurrency investments looking ahead.