- Federal prosecutors have reportedly accused former FTX head Sam Bankman-Fried of stealing customer funds to make political donations.
- Bankman-Fried faces seven charges of wire fraud, securities fraud, commodities fraud and money laundering.
- A judge revoked his bail last week following prosecutors’ allegations that he attempted to tamper with a witness.
Accusations Against Sam Bankman-Fried
Federal prosecutors have reportedly accused disgraced former FTX head Sam Bankman-Fried of stealing customer funds to make political campaign donations. According to a new Reuters report, federal prosecutors are accusing Bankman-Fried of making $100 million worth of political campaign contributions ahead of the 2022 U.S. midterm elections by using customer funds. As quoted by Reuters, an indictment amended on Monday alleges that the political contributions were made to boost his influence to more effectively lobby Congress and regulatory agencies for rules that would help FTX’s business grow.
Federal prosecutors also reportedly accuse Bankman-Fried of scheming with two FTX executives to conceal the source of funds and get around campaign finance contribution limits. Bankman-Fried faces seven charges of wire fraud, securities fraud, commodities fraud and money laundering for an alleged multibillion-dollar scheme that included lying to customers and commingling their funds deposited into FTX. He no longer is facing a separate count on conspiracy to violate campaign finance laws.
Trial Date Set
Bankman-Fried has pleaded not guilty and is scheduled to go on trial on Oct. 2nd. Last week, a judge revoked his bail and he was taken into prison following prosecutors’ allegations that he attempted to tamper with a witness.
Federal prosecutors said last month they would drop the charge due to diplomacy issues with the Bahamas but clarified in an amended indictment last week that Mr. Bankman Fried remains charged with conducting an illegal campaign finance scheme as part of the previously mentioned fraud and money laundering schemes originally charged