According to a new indictment filed in New York federal court, four additional charges have been filed on FTX co-founder Sam Bankman-Fried (SBF), including commodities fraud and contributing to a political party illegally.
SBF is accused of multiple schemes to defraud the previous eight charges. He could face 40 years imprisonment if he is convicted of additional charges.
The new allegation says that SBF was involved in fraudulent activity associated with its collapsed crypto exchange, FTX, and hedge fund, Alameda Research. Furthermore, he was also charged with hundreds of political donations, which is a violation of federal campaign finance laws.
SBF is already facing charges of conspiracy to commit wire fraud on customers and lenders; conspiracy to commit commodities fraud and securities fraud; conspiracy to commit money laundering; conspiracy to defraud the U.S. and violating campaign-finance laws.
According to the filing, SBF and other associates opened a bank account, which “falsely represented to a financial institution that the account would be used for trading and market making.” The account was used to receive and transmit customers’ funds in reality.
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Furthermore, the SBF allegedly opened a company with the obscure name of North Dimension to develop a false story for an unnamed bank. The bank has previously denied allowing him to open an account.
The file also stated that SBF and other-accused “agreed to and did make corporate contributions to candidates and committees in the Southern District of New York that were reported in the name of another person.”
SBF had also made significantly enormous donations to the pro-LGBTQ political action committee and Republicans indirectly with the help of its employees. Nishad Singh, who was director of engineering at FTX donated $1.1 million to the LGBTQ Victory Fund Federal PAC, according to Federal Election Commission’s (FEC) record.
On the other hand, FTX’s executive named Ryan Salame became one of the top Republican contributors in the recent elections after he favored conservative candidates and committees through donations.
Another statement read, “an internal Alameda spreadsheet noted over $100 million in political contributions, even though FEC records reflect no political contributions by Alameda for the 2022 midterm elections to candidates or PACs.”
