FTX Founder Sam Bankman-Fried Faces New Charges

FTX founder Sam Bankman-Fried is facing new criminal charges after a judge unsealed a new 12-count indictment against him on Thursday. This comes months after the former crypto exchange head was first indicted on eight counts last year.

Bankman-Fried, who is currently under house arrest on a $250 million bond, has pleaded not guilty to criminal charges and is awaiting an October trial. A Bankman-Fried spokesperson declined to comment on the new indictment.


Conspiracy to Commit Bank Fraud

The new indictment charges Bankman-Fried with conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transfer business. Additionally, Bankman-Fried is accused of committing wire fraud on FTX customers, securities fraud on FTX investors, and conspiracy to make unlawful political contributions and defraud the Federal Election Commission, among other crimes.

According to the new indictment, Bankman-Fried had certain political contributions made in the names of two other FTX executives because he did not want to be known as a left-leaning partisan or have his name attached to some Republican candidates. One executive “ultimately became — at least in name — one of the largest Democratic donors in the 2022 midterm elections,” the indictment said.

The 39-page document also accuses Bankman-Fried of “willfully and knowingly” conspiring to commit bank fraud. Bankman-Fried allegedly told a financial institution that an account would be used for trading and market making, “even though Bankman-Fried knew that the account would be used to receive and transmit customer funds in the operation of a cryptocurrency exchange.”


Shockwaves in Crypto Community

If convicted on all counts, Bankman-Fried could spend decades in jail. It remains to be seen how these new charges will affect FTX and the wider cryptocurrency industry. The case has been closely watched by investors and regulators alike, as it could have far-reaching implications for the future of cryptocurrency regulation.

The news of the new charges against Bankman-Fried sent shockwaves through the cryptocurrency community, with many wondering what this means for the industry as a whole. Some experts say that this case underscores the need for more robust regulatory oversight of cryptocurrency exchanges and other financial institutions.

The trial is set to begin in October, and many will be watching closely to see what the outcome will be. In the meantime, Bankman-Fried remains under house arrest and has yet to comment on the new charges against him.