FTX co-founder Sam Bankman-Fried faces four new criminal charges
FTX co-creator Sam Bankman-Fried (aka SBF) is now dealing with four new charges over the collapse of his crypto exchange. A newly unsealed indictment in a New York federal court accuses SBF of fraudulent activity through both FTX and the linked Alameda Research 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.
The expanded charges now include 12 counts. A source speaking to CNBC claims the additional allegations could lead to an additional 40 years in prison if SBF is convicted.
SBF was arrested in the Bahamas on December 12th, and quickly dropped plans to fight extradition to the US. He has already pleaded not guilty to federal charges that include multiple wire fraud counts. He also faces a civil lawsuit from the Securities and Exchange Commission as well as action from the Commodity Futures Trading Commission. Prosecutors claim Bankman-Fried defrauded investors of nearly $2 billion, but the ex-CEO maintains he never tried to commit fraud and doesn’t think he’s criminally liable for FTX’s downfall. Two executives, Caroline Ellison and Zixiao “Gary Wang,” have pleaded guilty to their own fraud charges.
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FTX co-creator Sam Bankman-Fried (aka SBF) is now dealing with four new charges over the collapse of his crypto exchange. A newly unsealed indictment in a New York federal court accuses SBF of fraudulent activity through both FTX and the linked Alameda Research 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.
The expanded charges now include 12 counts. A source speaking to CNBC claims the additional allegations could lead to an additional 40 years in prison if SBF is convicted.
SBF was arrested in the Bahamas on December 12th, and quickly dropped plans to fight extradition to the US. He has already pleaded not guilty to federal charges that include multiple wire fraud counts. He also faces a civil lawsuit from the Securities and Exchange Commission as well as action from the Commodity Futures Trading Commission. Prosecutors claim Bankman-Fried defrauded investors of nearly $2 billion, but the ex-CEO maintains he never tried to commit fraud and doesn’t think he’s criminally liable for FTX’s downfall. Two executives, Caroline Ellison and Zixiao “Gary Wang,” have pleaded guilty to their own fraud charges.
Developing…
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission. All prices are correct at the time of publishing.
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