FTX co-founder Sam Bankman-Fried has been charged with four new criminal offenses in a superseding indictment filed in federal court in New York, CNBC reports.
According to people with insights into the newly unsealed charges, Bankman-Fried could face an additional 40 years in prison if convicted.
The new charging document details Bankman-Fried's alleged fraudulent behavior with his crypto exchange company and an affiliated hedge fund, Alameda Research.
SBF Hit with Four New Criminal Charges
The 39-page indictment provides additional information regarding political donations that Bankman-Fried allegedly directed in violation of federal campaign finance laws.
It also detailed how Bankman-Fried allegedly engaged in an illegal scheme involving straw donors as he attempted to use customer funds to finance a $40 million political influence campaign.
The indictment alleges that Bankman-Fried and his co-conspirators illegally contributed over 300 political contributions totaling tens of millions of dollars using a straw donor or corporate funds.
In December, Braden Perry, a legal expert and partner at Kennyhertz Perry, stated that "campaign donations on both sides of the aisle from FTX and there have been political overtones and undertones in this case."
Bankman-Fried is accused of stealing FTX customer deposits and using them to support FTX's and Alameda's operations and investments, to fund speculative investments, to make charitable contributions, and to enrich himself.
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Bankman-Fried's Multiple Shady Political Donations
According to the new filing, Bankman-Fried conspired to set up political donations to be kept in the names of two other FTX executives to avoid specific contributions being publicly reported in his name. Prosecutors say Bankman-Fried made more than 300 donations.
CNBC reports that one such instance occurred in 2022 when Bankman-Fried and "others agreed that he and his co-conspirators should contribute at least a million dollars to a ... candidate running for a United States Congressional seat and appeared to be affiliated with pro-LGBTQ issues"
The document claims that the group of conspirators chose a person only known as "CC-1," or co-conspirator 1, to be the donor.
In addition to Bankman-Fried, Ryan Salame, the former co-chief executive officer of FTX Digital Markets, and Nishad Singh, the former director of engineering at FTX, were among the largest political donors from FTX, Bloomberg reports. They contributed $70.5 million to the midterm elections of 2022.
In December, the former billionaire was charged with securities fraud, wire fraud, money laundering, and conspiracy to circumvent campaign finance regulations.
In January, Bankman-Fried pleaded not guilty to charges related to the failure of his crypto exchange and hedge fund Alameda Research in a New York federal court. Bankman-Fried remains free on a personal recognizance bond of $250 million.
The new indictment provides additional information regarding the alleged criminal actions of Bankman-Fried and his accomplices. It emphasizes the gravity of the allegations and the possible ramifications should he be found guilty.
The case also highlights the need for increased oversight and regulation in the cryptocurrency industry. Industry insiders will closely monitor the investigation and any subsequent proceedings.
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