Bankman-Fried was arrested in the Bahamas in December and brought to the United States soon afterward. FTX filed for bankruptcy on Nov. 11, when it ran out of money after the cryptocurrency equivalent of a bank run.
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- Disgraced FTX founder Sam Bankman-Fried faces four additional criminal charges of conspiracy contained in a superseding indictment unsealed on Thursday.
- The new charges that have been filed against him have raised his potential prison sentence from 115 years to 155 years, according to authorities.
Founder of cryptocurrency exchange, FTX, SamBankman-Fried is facing new charges of fraud, including securities fraud and conspiracy fraud, which accuse him of deceiving thousands of investors out of billions of dollars.
The charges allege that Bankman-Fried marketed himself as a trustworthy and law-abiding figure who was working to improve the cryptocurrency industry, but in reality, he was engaged in fraudulent activity.
Bankman-Fried’s image was bolstered by high-profile advertising during the Super Bowl in 2022 and by making large political donations.
The charges were filed in Manhattan federal court, and the U.S. Attorney, Damian Williams, indicated that prosecutors are still building their case against Bankman-Fried.
To clarify, securities fraud involves misrepresenting information to investors, while conspiracy fraud involves working with others to commit fraud. These charges are serious and could result in significant penalties if Bankman-Fried is found guilty.
Notably, the charges filed against him have raised his potential prison sentence from 115 years to 155 years, according to authorities.
On the same premise, the charges also increased the number of counts in the indictment from 10 to 12. Prosecutors have put forth a more detailed and comprehensive account of what allegedly happened to FTX and Alameda Research, Bankman-Fried’s cryptocurrency exchange, and an affiliated hedge fund.
The prosecutors’ description of events portrays various parties, including FTX customers, investors, financial institutions, lenders, and the Federal Election Commission, as victims of fraudulent schemes that Bankman-Fried is accused of carrying out from 2019 until November 2021.
The updated indictment paints a picture of Bankman-Fried as someone who allegedly engaged in fraudulent activity on a large scale over a significant period of time.
#FTX Founder Faces 4 New Charges Threatening His Freedom
These charges include illegal political donations, bank fraud, conspiracy to commit bank fraud, and more#cryptocurrency #BTC #ETH #OP pic.twitter.com/ArgNAZeJe3— C-NM (@Cryptonewsmedi1) February 24, 2023
The statement explains that prosecutors have accused Bankman-Fried, the CEO of cryptocurrency trading platform FTX and its parent company, Alameda Research, of stealing billions of dollars in customer deposits.
The stolen assets were reportedly used to pay for the companies’ operations and investments, as well as for speculative endeavors, charitable donations, and unlawful political contributions to both Democrats and Republicans in an attempt to influence bitcoin regulation in Washington.
Also Read: U.S. JUDGE DELAYS CFTC AND SEC CASES AGAINST FTX’S SAM BANKMAN-FRIED PENDING CRIMINAL TRIAL
Bankman-Fried has already pleaded not guilty to charges that he cheated investors and looted customer deposits at FTX, his cryptocurrency platform.
He has appeared in court twice in the past two weeks as a result of prosecutors’ worries that he might be interacting online in ways they can’t track. Additionally, they claim that based on his interactions, he may be attempting to persuade a witness to testify against him.
He is free on a personal recognizance bond of $250 million. The bail agreement allows him to live at his parents’ house in Palo Alto, California, with electronic surveillance.
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