Thursday, February 9, 2023

Here Are the 8 Criminal Charges Sam Bankman-Fried Faces in a New York Court

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Disgraced crypto darling Sam Bankman-Fried faces 8 criminal counts after his exchange imploded a month ago. As he faces extradition to the US since being arrested in the Bahamas, the Southern District of New York unsealed court documents accusing the billionaire crypto poster boy of conspiracy and fraud.

Here are the charges:

  1. Conspiracy to commit wire fraud on customers
  2. Wire fraud on customers
  3. Conspiracy to commit wire fraud on lenders
  4. Wire fraud on lenders
  5. Conspiracy to commit commodities fraud
  6. Conspiracy to commit securities fraud
  7. Conspiracy to commit money laundering
  8. Conspiracy to defraud the United States and violate campaign finance laws.

The 30-year-old who lived in the Bahamas where FTX, the 32 billion dollar company was headquartered, is believed to have swindled investors of $1.8 billion and engaged “in a scheme to defraud customers of by misappropriating those customers’ deposits, and using those deposits to pay expenses and debts of Alameda Research,” the indictment stated.

The indictment also said Bankman-Fried gave false and misleading information to lenders about the true financial condition of Alameda, his trading company where the money was funneled to fund his debt and expenses.

The allegations that he violated campaign finance laws hinge on his million-dollar donations to US political groups when he sealed the source and exceeded the permissible amount.

“In or about 2022, Samuel Bankman-Fried, the defendant, and one or more other conspirators agreed to and did make corporate contributes to candidates and committees in the Southern District of New York that were reported in the name of another person,” the indictment said.

These charges are separate from charges filed by the US Securities and Exchange Commission which accuses Bankman-Fried of defrauding investors of $1.8 billion and building “a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

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