Breaking News: Sam Bankman-Fried Charged with Four Crimes

Breaking News: Sam Bankman-Fried Charged with Four Crimes

Sam Bankman-Fried, the co-creator of FTX, is facing four new charges in relation to the collapse of his cryptocurrency exchange. According to a newly unsealed indictment in a New York federal court, Bankman-Fried is accused of fraudulent activity through both FTX and the linked Alameda Research hedge fund. He is also alleged to have violated federal campaign finance laws by making secret donations to a congressional super PAC using the names of two executives.

The expanded charges now include a total of 12 counts, and a source speaking to CNBC claims that the additional allegations could result in an additional 40 years in prison if Bankman-Fried is convicted.

Bankman-Fried was arrested in the Bahamas on December 12th and subsequently dropped plans to fight extradition to the US. He has already pleaded not guilty to federal charges that include multiple wire fraud counts. Additionally, he faces a civil lawsuit from the Securities and Exchange Commission (SEC) as well as action from the Commodity Futures Trading Commission (CFTC). Prosecutors claim Bankman-Fried defrauded investors of nearly $2 billion, but the ex-CEO maintains he never tried to commit fraud and does not believe he is criminally liable for FTX’s downfall. Two executives, Caroline Ellison and Zixiao “Gary Wang,” have already pleaded guilty to their own fraud charges.

FTX is not the only major cryptocurrency brand grappling with legal issues; Binance, Celsius and Terraform Labs are also facing varying degrees of criminal charges, civil suits, and bankruptcy. However, FTX and its former CEO remain the most prominent examples of the crypto industry’s tumult, and the new charges are likely to cement that position.

The further indictments against Bankman-Fried also reflect the federal government’s increasing eagerness to crack down on cryptocurrency and crypto assets. House and Senate politicians are hoping to more tightly regulate the industry, while agencies like the SEC, CFTC, and Treasury Department are pushing for clearer rules and more charges.

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