ftx

US Prosecutors hit disgraced FTX founder Sam Bankman-Fried with new criminal charges–bribing Chinese government officials with $40 million.

This is the 13th charge added to a growing list of charges against Bankman-Fried since the collapse of his billion-dollar crypto empire.

The newly unsealed indictment alleged that Bankman-Fried conspired to pay off “one or more” Chinese officials to grant him access to his frozen accounts which contained more than $ 1 billion in cryptocurrency in 2021.

Unsealed documents say, “After confirmation that the accounts were unfrozen, Bankman-Fried authorized the transfer of additional tens of millions of dollars in cryptocurrency to complete the bribe.”

This is a violation of the US anti-bribery law. He will be arraigned on the new indictment on Thursday before U.S. District Judge Lewis Kaplan in Manhattan federal court.

He intends to plead not guilty, according to a person familiar with the matter.

Before the alleged bribery, Bankman-Fried tried other methods to unfreeze the funds–hiring lawyers to advocate for him in China and opening accounts on Chinese exchanges with the use of the personal information of several unnamed people who were reportedly not affiliated with FTX or Alameda Research, according to documents.

Bankman-Fried remains on a $250 million bond under house arrest at his parents’ house in California, and has pleaded not guilty to eight counts of fraud and conspiracy as over one million clients grieve the loss of billions of dollars when he allegedly funneled money from FTX to Alameda Research, his hedge fund.

The 31-year-old lived in the Bahamas where FTX, the 32 billion dollar company was headquartered and it is believed his exchange was “a scheme to defraud customers by misappropriating those customers’ deposits and using those deposits to pay expenses and debts of Alameda Research.”

When China began to scrutinize the cryptocurrency in 2021, Bankman-Fried moved his company’s headquarters from Hong Kong, China to the Bahamas where it was registered by the Securities Commission of the Bahamas and operated under the name FTX Digital Markets.

He said at the time, “The Bahamas is one of the few places to set up a comprehensive framework for crypto,” adding that it“has emerged from COVID lively, safe, and without quarantine.”

Disgraced FTX founder Sam Bankman-Fried could face an additional 40 years in a US prison after prosecutors hit him with four more charges in documents unsealed on Thursday.

The additonal charges include conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transfer business and demands for the forfeiture of assets which include assets held in Binance accounts, $170 million in cash held at Silvergate Bank and more than 55 million shares held in a commission free investing app Robinhood Markets.

Manhattan U.S. Attorney Damian Williams, said in new statements since the new indictments, “We are hard at work and will remain so until justice is done.”

The indictments also claim that Bankman-Fried, and his co-conspirators–Gary Wang and Caroline Ellison– “made over 300 political contributions, totaling tens of millions of dollars, that were unlawful because they were made in the name of a straw donor or paid for with corporate funds.”

“To avoid certain contributions being publicly reported in his name, Bankman-Fried conspired to and did have certain political contributions made in the names of two other FTX executives,” the new filing claims.

Other claims in documents stated that Bankman-Fried created a bogus company called North Dimension, “which had no employees or business operations,” to open a bank account for trading purposes after rejections from another bank. He also created a website for the fake company using monies from his credit card, prosecutors say.

Since being extradicted to the US from the Bahamas where FTX was headquartered, Bankman-Fried remains under house arrest at his parents’ home in California. He has pleaded not guilty to the eight previous charges against him.

Photo credit: Reuters

Embattled crypto-knight Sam Bankman-Fried is reportedly facing a security risk after three men drove into a metal barricade outside of his home in California, his lawyers filed in a Manhattan federal court.

“You won’t be able to keep us out,” the unidentified men said to a security guard as they got back in the vehicle and drove away.

Christian Everdell from New York law firm Cohen & Gresser said the 30-year-old disgraced one-time billionaire and his parents are targets of “actual efforts to cause harm to them,” requesting that US District Judge Lewis Kaplan reject the notion to unseal documents revealing the guarantors of Bankman-Fried’s $250,000,000 bail.

The men have not been identified neither did his lawyers reveal when the incident occurred but only said “recent.”

The scare comes after customers of the fallen crypto exchange and bankrupt FTX, demand billions of dollars allegedly defrauded by Bankman-Fried. At last court hearing, it was revealed a million customers were affected and many lost their life savings.

Bankman-Fried lives in the home with his parents Joseph Bankman and Barbara Fried since December when he was extradited from the Bahamas to New York, where he was released on bail when his parents put up their 1.8 million dollar home as equity.

The 30-year-old was accused of his involvement in some shady dealings of funneling billions of dollars to his sister company Alameda Research.

He pleaded not guilty and returns to court in October to face trial.

Though FTX Founder Sam Bankman-Fried was unable to get bail in the Bahamas, he secured a hefty $250 million bail in New York, which was described as “the largest-ever pretrial bond.”

When he went to court last week in the Bahamas, a judge feared he could flee the country and denied him bail as he was ordered to jail at the Bahamas Department of Corrections. But when he was extradited to New York, a US judge easily granted him bail, which was surprising considering the billions of dollars lost on his platform and the alleged funneling of money from FTX to his sister company.

The former billionaire previously stated in a media interview that he only had $100,000 left in his bank account after filing bankruptcy on his $32 billion crypto exchange, FTX. So when he was released on a $250 million bond, many were surprised.

What are the terms of Sam Bankman-Fried’s bail?

• Judge Gabriel Gorenstein said Bankman-Fried would be released to his parents’ home in California with “strict” supervision.
• He was released on a ‘recognizance bail’ which means he signed a commitment to return to court on Jan 3, when he will enter his plea of ‘guilty’ or ‘not guilty’ and be arraigned.
• The ‘personal recognizance bond’ is based on Bankman-Fried’s promise with his parents’ promise to pay $250 million if he fails to show up for court.
• His parent’s home, reportedly worth $4 million, was put up as equity, with their signatures along with two other people with “considerable” assets.
• Bankman-Fried wears an electronic monitoring bracelet.
• He must submit to mental health counseling.
• The 30-year-old can only travel within and between the Northern District of California and the Southern and Eastern Districts of New York.
• He can not open any new lines of credit of more than $1,000 while awaiting trial.

Unprecedented

Bankman-Fried did not have to pay any cash, but a simple commitment made him a free man. Typically, defendants on bond are charged 10-15 percent of the bail in cash or must commit to collateral in the full amount of the bond and if he or she fails to show up to court, the pledged collateral is forfeited.

Photo credit: Epoch Times

Former crypto-darling and billionaire Sam Bankman-Fried left the Bahamas on Wednesday around 8 pm, bound for the United States to face fraud charges in a New York court.

The extradition was the conclusion of his stay in the Bahamas since establishing his multibillion-dollar crypto headquarters in the Bahamas. And it marks the end of a tumultuous week since his arrest last Monday.

He intended to fight the extradition but eventually reversed the decision which landed him at Odyssey Aviation where he was carried by US Marshalls to New York, where he is detained.

He is represented by high-profile lawyer Mark Cohen who could apply for bail. It remains to be seen if it will be granted.

Bankman-Fried’s handover at Odyssey Aviation, Bahamas

Bankman-Fried’s arrival in New York, USA

Photo credit: The Royal Bahamas Police Force and Fox News

After former FTX Founder Sam Bankman-Fried signed extradition papers to face criminal charges in the United States, he will be handed over to US Marshalls.

The Bahamas judge Shaka Serville has approved all of the legal requirements for the extradition and was satisfied that Bankman-Fried was not “forced, coerced or threatened” into making the decision.

The 30-year-old  will be handcuffed and placed on board a plane with an escort from the FBI and the United States Marshals Service which have already arrived in the Bahamas. They will then carry him to La Guardia or JFK Airport.

He will either go to the federal detention facility or a Manhattan courtroom in the Southern District of New York. If he is sent to court, there will be an initial hearing and arraignment before a judge and he will enter a plea to the 8 charges against him.

Following a tumultuous week since his arrest in the Bahamas,  he is expected to arrive in the United States on Wednesday evening and will contest allegations that he funneled billions of dollars from his fallen exchange FTX, to his trading fund company, Alameda Research.

“Yes, I do wish to waive my right to such formal extradition proceedings,” he told the court on Wednesday morning.

His defense lawyer Jerone Roberts said his client was “anxious to leave” the Bahamas and requested that the “rule of specialty” be imposed which based on the Bahamas and US extradition treaty, states that a person can only be tried on the charges for which they are extradited.

Photo credit: Reuters

Former FTX CEO Sam Bankman-Fried will be extradited to the United States following a back-and-forth in Bahamian courts.

The now disgraced crypto knight who has become known as the mastermind behind one of the biggest financial schemes had planned to fight the extradition, then apparently folded. But when he appeared in court, his lawyer and the prosecutor seemed shocked to learn about the decision. Bankman was carried back to prison but returned a short time later, agreeing to face a US court.

Bankman-Fried’s lawyer Jerone Roberts said the fallen crypto king “wishes to put the customers right and that is what has driven his decision to be voluntarily extradited to the United States.”

Bankman-Fried would have to sign an extradition paper as he prepares to be handcuffed, placed on board a plane with an escort from the US Marshals Service, carried to La Guardia or JFK Airport, and sent to the Southern District of New York courthouse.

Bankman-Fried is expected to appear in Bahamian court again on Tuesday morning to complete the extradition process.

He was arrested by Bahamian authorities last week Monday around 6 pm at the request of the US government, and spent a week in Bahamian prison after he was denied bail.

Prime Minister Philip Davis who became an acquaintance of Bankman-Fried said at the time of his arrest, “The Bahamas and the United States have shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.”

He is wanted in New York for eight criminal charges– conspiracy, fraud, money laundering and violation of the fiance law, and could be sentenced to 115 years in prison. And more could be pending. All of this comes after the implosion of his 32-billion-dollar crypto empire and revelations that he diverted customer monies to his trading company, Alameda Research.

The 30-year-old crypto darling who has permanent residency in the Bahamas was in the country since 2021 when he moved the exchange from Hong Kong, China.

His high-profile attorney Mark Cohen represents him as he attempts to beat the charges.

Photo credit: Reuters

Sam Bankman Fried, former FTX CEO was sent back to prison today after some apparent confusion at his court hearing. It was expected that he would appear in the Bahamas court today to be extradited to the United States. However, when he arrived, no one seemed to know that he was coming.

The Daily Mail reported that the 30-year-old tapped his foot nervously and clenched and unclenched his hands before the judge arrived.

After the judge’s arrival, his lawyer Jeron Roberts told the court, “I did not request him to be here this morning.”

It is reported that Prosecutor Frankly Williams seemed surprised too, stating that the government of the Bahamas neither the government of the United States knew that Bankman-Fried would appear before a judge today.

“We are here for a certain purpose,” he said, then asked if Bankman-Fried can “tell us why he is here.”

The court was adjourned for 45 minutes for Roberts to speak with Bankman-Fried on the sidelines.

After the adjournment, Bankman-Fried was sent back to the Bahamas Department of Corrections, and no final decision was made regarding his extradition.

Sources familiar with the matter said over the weekend, that the fallen crypto genius would appear in court on Monday to willfully return to the US after a short stint at the correctional facility.

His extradition to the US means he could be sentenced to an estimated 115 years in prison. US prosecutors accused him of “one of the biggest financial frauds in US history.”

Bankman-Fried was initially expected to return to court for a bail hearing on January 7 and an extradition hearing on February 8.

Photo credit: Reuters

Though prosecutors in the United States have charged former FTX CEO Sam Bankman-Fried with fraud, conspiracy, money laundering, and violations of campaign finance law, the Bahamas has yet to convict the 30-year-old of a single crime.

Bankman-Fried lived in the Bahamas since 2021, after establishing the headquarters of his billion-dollar company in the country after the move from Hong Kong, China. He became a generous donor and was the face of the Bahamas’ future investment in the crypto industry.

The permanent resident was given the approval to set up the exchange here. But the alleged crimes were committed under the noses of the regulatory body, the Securities Commission Bahamas.

Three weeks ago, before the US charges were filed, Attorney General Ryan Pinder in a televised national address announced that the Commission and the Royal Bahamas Police Force were investigating Bankman-Fried’s handling of customer funds in FTX.

From that day to this, no charges have been filed. Neither has it been stated whether or not they found any sign of wrongdoing at the exchange.

However, unsealed court documents in the US, revealed that the former co-CEO at FTX Digital Markets Ryan Salame, tipped off the executive director of the Securities Commission of the Bahamas, Christine Rolle, and informed her that the fallen crypto-knight possibly committed fraud when he funneled billions of dollars from FTX to Alameda Research.

Rolle then alerted Bahamas Police Commissioner Clayton Fernander for an investigation into the matter. Still no word from the Commissions or the police force.

Bankman-Fried was arrested last week Monday in the Bahamas at the request of the US government based on an extradition treaty between the two countries. The US has since provided sufficient evidence that he committed a crime in their country.

Photo credit: Reuters

Sam Bankman Fried, former FTX CEO is expected to appear before a judge in the Bahamas on Monday instead, to be extradited to the United States to face 8 criminal charges of fraud and conspiracy, a source close to the matter said.

The fallen billionaire and crypto genius is thinking of willfully deciding to return to the US after he initially petitioned to not waive his rights to be extradited, and was placed in the custody of prison guards at the infamous Bahamas Department of Corrections (Fox Hill Prison) where he sits watching movies and reading news articles about himself as he attempts to adapt to his new life, far removed from his luxurious life in Albany.

It is not known what spurred him to reconsider the extradition fight, but the former ‘crypto darling’ whose extradition hearing was scheduled for February 8, could be sentenced to 115 years in a US prison where prosecutors labeled his dealings at FTX as “one of the biggest financial frauds in US history.”

Michael Zweiback, a Los Angeles-based criminal lawyer who spoke on the matter earlier in the week said after extradition, “he will be placed in handcuffs and put on board a plane with an escort from the US Marshals Service and brought to La Guardia or JFK Airport and brought straight to the SDNY courthouse (the Manhattan federal court).

“He can sign extradition paperwork tomorrow and be there within a week,” he said.

Bankman-Fried and his lawyers attempted to get bail since his arrest last Monday, but were denied and were expected to seek another hearing on January 7 so that he no longer sits in the medical area of the prison where officials say he remains in “good spirits.”

The Washington Post reported that the former billionaire said, “It’s okay, I will deal with it,” when asked by guards how he felt watching news reports about himself splattered around the globe in recent days.

It is unclear if the Bahamas will press charges against Bankman-Fried and attempt to hold him. But its Securities Commission Executive Director Christina Rolle revealed to Commissioner Police Clayton Fernander that it was made aware of possible fraud when his Digital Markets Co-chief Executive Officer Ryan Salame alerted the board about funds being diverted from FTX to Alameda Research, to cover losses.

Billions of dollars are reportedly missing amidst the bankruptcy of the exchange, as customers and investors await the outcome of this big financial scandal.