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US: Bankman-Fried used stolen FTX money to influence – Economy

US: Bankman-Fried used stolen FTX money to influence – Economy

Sam Bankman-Fried, the founder of collapsed cryptocurrency exchange FTX, funded campaign donations with stolen client funds, according to US prosecutors. Federal prosecutors said Monday that Bankman-Fried received more than $100 million from its clients to support candidates ahead of the 2022 U.S. midterm elections.

An amended indictment alleges he directed two 31-year-old FTX executives to evade donation limits by concealing the source of funds by donating to both Democrats and Republicans. “In turn, he used that influence to advocate laws and regulations in favor of Congress and regulators to help FTX continue to accept and grow customer deposits,” the indictment states. A spokeswoman for Bankman-Fried declined to comment.

FTX went bankrupt in November 2022 after rumors of irregularities and a failed bailout by rival Finans. According to insiders, Bankman-Fried secretly transferred $10 billion in FTX client funds to Alameda. Bankman-Fried has pleaded not guilty.

US authorities accuse him of “fraud of epic proportions” and money laundering. Bankman-Fried’s arraignment is scheduled for Oct. 2. He was held at his parents’ home on $250 million bail pending trial and was arrested last Friday on suspicion of tampering with witnesses.