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Ex-FTX boss Banman-fried hit with additional criminal charges

US judge rules on FTX founder's bail conditions Friday

US judge rules on FTX founder's bail conditions Friday

Four additional criminal allegations has been made against the former CEO of the defunct cryptocurrency exchange FTX, accusing him of plotting to make unlawful political donations and to commit bank fraud.

The estranged CEO, Sam Bankman-Fried, had entered a no contest plea to the charges of defrauding clients and investors according to BBC.

Recall that Gadgets Africa reported when FTX declared bankruptcy last year, making it impossible for many consumers to withdraw their money.

Mr. Bankman-Fried is currently charged with a total of 12 crimes.

Mr. Bankman- Fried’s spokesman also declined to comment on the development.

Following the most recent accusations, prosecutors said that Mr. Bankman-Fried and two other former FTX executives planned to donate tens of millions of dollars to sway US lawmakers into passing laws that would benefit the company.

According to reports, the gifts were made using business funds or “straw” contributors, which allowed Mr. Bankman-Fried to surpass contribution restrictions.

They asserted that Mr. Bankman-Fried instructed one executive to support Republicans while instructing the other to support Democrats, with many of these donations coming from his Alameda Research hedge fund, which also included money from FTX customers.

In response to allegations that he used FTX customer deposits to support Alameda Research, purchase real estate, and give to political campaigns, Mr. Bankman-Fried has already entered a not guilty plea.

In December, after his arrest, he was freed after posting a $250 million (£208 million) bail.

But if found guilty, he could spend more than a century in jail.

The trial date has been scheduled for October 2 by Judge Lewis Kaplan.

 

 

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