šØ Legal Update: Sam Bankman-Fried's Crypto Controversy šØ
United States prosecutors are seeking court approval to seize cryptocurrency linked to alleged bribes paid to Chinese officials by FTX co-founder Sam Bankman-Fried.
In a recent lawsuit filed in a New York District Court, prosecutors claim that a Binance account, initially valued at $8.6 million and now approximately $18.5 million, was used to launder funds for bribes prior to FTX's collapse in late 2022.
The suit details that in 2021, Chinese authorities froze two accounts belonging to Alameda Research, which held $1 billion in crypto. Following a $40 million bribe sent to a private wallet, these accounts were unfrozen shortly after.
Prosecutors allege that Bankman-Fried authorized further payments totaling tens of millions in cryptocurrency to finalize the bribe. The account in question reportedly had multiple deposit accounts used to obscure these transactions, with a consistent flow of deposits and withdrawals.
Caroline Ellison, former CEO of Alameda Research, testified that the total bribe amounted to around $150 million. Recently, during Bankman-Fried's trial, Judge Lewis Kaplan ordered the seizure of the account, which still contains various cryptocurrencies.
Following the downfall of FTX, Bankman-Fried was convicted on seven felony counts and sentenced to 25 years in prison. Although he faced additional charges related to foreign bribery, those were ultimately dropped. His legal team has since filed an appeal, claiming unfair treatment during the trial.
This case continues to unfold, highlighting the complexities of cryptocurrency regulation and legal accountability in the financial sector.
