FTX founder Sam Bankman-Fried is accused of bribing at least two Chinese officials $40 million to release his cryptocurrency business’s assets in a Tuesday unopened accusation.
The new charges are the most recent legal problems for the 31-year-old cryptocurrency entrepreneur, who has been facing fraud allegations since his arrest in the Bahamas in December of last year.
Sam Bankman-Fried Faces 13 Charges
According to the accusations of prosecutors, China had frozen accounts belonging to his hedge fund, Alameda Research, as part of a crackdown on cryptocurrencies. The indictment claims the accounts contain about $1 billion worth of cryptocurrency.
Federal prosecutors have charged Bankman-Fried with thirteen crimes since his extradition from the Bahamas to face federal fraud charges related to the theft of billions of dollars in customer funds.
In January, Bankman-Fried pled not guilty to an eight-count criminal indictment accusing him of illegally combining the funds of FTX Trading Ltd. and Alameda Research LLC to fund luxury real estate purchases, personal expenses, and illegal federal campaign contributions.
Caroline Ellison and Gary Wang, two former Bankman-Fried business partners, have already pleaded guilty to federal charges. Both have agreed to help prosecutors investigate the alleged fraud scheme.
The Futures Exchange, also known as FTX, filed for bankruptcy last November in what was initially thought to be a typical bank run on the exchange’s reserves. Federal investigators allege, however, that Bankman-Fried oversaw a massive fraud in which he stole deposits from his own company to fund bets at his hedge fund, all the while maintaining a lavish lifestyle.
FTX was estimated to be worth $32 billion in January and was one of the largest and busiest platforms for trading cryptocurrencies. It is estimated that approximately $1 billion in customer funds have vanished.
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Changes To Bail Terms
After posting a $250 million personal recognizance bond, Bankman-Fried has been free for several months.
However, U.S. District Judge Lewis A. Kaplan has placed strict restrictions on Bankman-contact Fried’s with the outside world. According to the order issued on Tuesday, he is prohibited from communicating with current and former FTX employees.
Kaplan has also restricted Bankman Fried’s access to a single laptop and phone for his legal defense under the supervision of his attorneys. In addition, Bankman is incapable of using other internet-capable communication devices.