FTX Co-Founder Sam Bankman-Fried Faces Four New Criminal Charges End-shutdown

FTX co-creator Sam Bankman-Fried (aka SBF) is now facing four new charges in the collapse of his cryptocurrency exchange. a newly opened indication in federal court in New York accuses SBF of fraudulent activity through both FTX and the linked hedge fund Alameda Research. 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.

Expanded charges now include 12 charges. A source talking to CNBC claims that the additional charges could lead to an additional 40 years in prison if SBF is convicted.

SBF was arrested in the Bahamas on December 12 and quickly dropped plans to fight extradition to the US. He has already pleaded not guilty to federal charges including multiple counts of wire fraud. He also faces a civil lawsuit from the Securities and Exchange Commission (SEC), as well as an action from the Commodity Futures Trading Commission (CFTC). Prosecutors claim Bankman-Fried defrauded investors of nearly $2 billion, but the former chief executive maintainers he never attempted to commit fraud and does not believe he is criminally responsible for the downfall of FTX. Two executives, Caroline Ellison and Zixiao “Gary Wang,” have pleaded guilty to their own fraud charges.

FTX is not alone in falling out of favor. Other major cryptocurrency brands, such as Binance, Celsius, and Terraform Labs, are also dealing with varying degrees of criminal charges (for themselves or former leaders), civil lawsuits, and bankruptcies. However, FTX and its former CEO remain the most prominent examples of the crypto industry’s tumult: the new charges are likely to only cement that position.

The additional allegations also reflect the growing enthusiasm of the federal government to crack down on crypto assets and cryptocurrencies. House and Senate politicians hope to more strictly regulate the industry, while agencies like the SEC, CFTC and the Treasury Department push for more fees and clearer rules.

All Engadget Recommended products are curated by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices are correct at the time of publication.

Leave a Reply

Your email address will not be published. Required fields are marked *