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United States: Bankman-Fried used stolen FTX funds to influence the economy

United States: Bankman-Fried used stolen FTX funds to influence the economy

The founder of collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, funded campaign donations with stolen customer funds, according to US attorneys. On Monday, federal prosecutors said Bankman-Fried took more than $100 million from its clients to support candidates ahead of the 2022 midterm elections in the United States.

The amended indictment alleges that the 31-year-old ordered two FTX executives to conceal the source of funds and circumvent donation limits by giving to both Democrats and Republicans. “In return, he used that leverage to pressure Congress and regulators to support laws and regulations he believed would make it easier for FTX to continue accepting customer deposits and growth,” the indictment reads. A Bankman-Fried spokesperson declined to comment.

After rumors of wrongdoing and a failed bailout by rival Binance, FTX slid into bankruptcy in November 2022. According to insiders, Bankman-Fried secretly transferred $10 billion in FTX customer funds to Alameda. Bankman-Fried pleaded not guilty.

US authorities accuse him of “fraud of epic proportions” and money laundering. Bankman-Fried’s trial is scheduled for October 2. He was arrested last Friday on suspicion of witness tampering after being held at his parents’ home on $250 million bail while awaiting trial.