The U.S. Department of Justice (DOJ) has targeted a Binance account containing $17.9 million in crypto assets. The agency claims this sum is allegedly connected to Sam Bankman-Fried’s bribery activities. The former FTX CEO, already caught in legal battles, now faces new accusations of using millions in crypto to sway Chinese officials.
Detailed of the Alleged Bribe and Binance Involvement
In a shocking twist, prosecutors claimed that in November 2021, Bankman-Fried orchestrated a $40 million USDT transfer. This massive fund was from FTX’s sister firm, Alameda Research.
This payment was allegedly a bribe to unfreeze approximately $1 billion worth of crypto assets locked on two Chinese exchanges. After confirming that the accounts were unfrozen, the accused arranged for additional crypto payments. This amounted to tens of millions of dollars in cryptocurrency to complete the bribe.
Bankman-Fried and his associates allegedly laundered bribe payments through a series of private wallets to cover their tracks. A portion of the laundered funds was then deposited into a Binance account. As the DOJ moves forward with its legal efforts, this transfer now faces potential seizure.
The Binance account contains various cryptocurrencies, including Solana, Cardano, Ripple, Internet Computer, and Avalanche. As of December 2023, the account held $8.6 million worth of digital assets. However, the market value of these assets has now surged to about $17.9 million.
Bankman-Fried’s Legal Reckoning
Bankman-Fried was convicted on seven criminal counts of fraud in 2023. After FTX’s collapse in late 2022, he was found guilty of defrauding customers, investors, and lenders. In March 2024, he was sentenced to 25 years in prison. He is facing the full consequences of his role in one of the biggest financial scandals in recent history.
Following FTX’s bankruptcy, under the leadership of John J. Ray III, the company is actively working to recover lost assets and repay its creditors. A recent court-approved reorganization plan aims to compensate 98% of its creditors at a 118% value rate.
Meanwhile, FTX continues to pursue lawsuits to recover billions of dollars in lost funds. FTX estate has filed a high-profile suit against Binance and its former CEO, Changpeng Zhao, seeking $1.76 billion in damages.
The Road Ahead: More Lawsuits From US DOJ and Fallout
The DOJ’s move to seize cryptocurrency connected to Bankman-Fried’s alleged bribery scheme highlights the ongoing legal consequences of FTX’s collapse. As authorities dig deeper, more instances of financial misconduct continue to surface.
The fallout from the scandal remains far-reaching, with new revelations adding complexity to the case. FTX’s ongoing efforts to recover lost assets could have lasting implications for the future of the crypto industry. How these developments unfold may reshape regulatory approaches and investor confidence.
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