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According to a fresh indictment released on Thursday morning, Sam Bankman-Fried, the creator of FTX, is accused of further crimes, including bank fraud.
Federal prosecutors added allegations of bank fraud and running an unregistered money transmitter to the eight counts he previously faced when they announced the new 12-count indictment against the former crypto wunderkind.
Previously, he only faced allegations of conspiracy to commit wire fraud on customers; conspiracy to commit wire fraud on lenders; wire fraud on lenders; conspiracy to commit commodities fraud; conspiracy to commit securities fraud; conspiracy to commit money laundering; and conspiracy to defraud the U.S. and violate campaign finance laws.
According to the unsealed accusations, Bankman-Fried and others “falsely represented to a financial institution that the account would be utilised for trading and market making” while in reality it was going to be used to receive and send customer funds. He opened a company, with a deliberately obscure name of North Dimension to tell a “false story” to an unnamed bank that had previously been reluctant to open an account, it added.
In the Southern District of New York, Sam Bankman-Fried and other conspirators “agreed to and did make corporate payments to candidates and committees that were reported in the name of another person,” the document added.
The document claimed that the previous CEO of FTX wanted to donate at least $1 million to a pro-LGBTQ political action group but could not locate anyone at the company who was either gay or bisexual in whom he had faith. According to the document, one anonymous CEO received encouragement to give, and another right-wing executive gave to Republican causes.
In the document, Sam Bankman-Fried is ordered to give up property valued at hundreds of millions of dollars that the government has already taken in many cases. These include the over 55 million share trading app Robinhood (HOOD) worth $550 million. Additionally, the motion requests the confiscation of more than $140 million in cash held by FTX Digital Markets in Silvergate and Farmington State Banks.
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