Sam Bankman-Fried, or “SBF,” the creator and former CEO of the FTX bitcoin exchange, is currently the subject of a fresh 13-count indictment from American law enforcement.
In a new superseding indictment, one of the new SBF’s accusations is an alleged $40 million payment to a Chinese government official, according to a court filing by US attorney Damian Williams.
The complaint asserts that SBF and other connected parties “directed and caused the transfer of at least roughly $40 million in cryptocurrencies intended for the benefit of one or more Chinese government officials.” This is stated in section 105 of the petition. The transaction was allegedly conducted in an effort to persuade and persuade Chinese regulators to unfreeze cryptocurrency accounts at FTX’s associate company, Alameda Research.
According to reports, the accounts contained cryptocurrencies valued more than $1 billion. In or around early 2021, “two of China’s main crypto exchanges” allegedly had some Alameda accounts frozen by Chinese government police, according to the complaint. The founder of FTX was aware of the freeze and attempted several ways to unfreeze the accounts, including transferring cryptocurrency to fictitious accounts in an effort to get around China’s freeze orders.
According to the court document, “Samuel Bankman-Fried spoke with others and finally agreed to and directed a multi-million dollar bribe to seek to unfreeze the accounts after months of unsuccessful attempts to unfreeze the accounts.” The U.S. officials discovered that after the accounts were unfrozen at SBF’s request, Alameda used unfrozen cryptocurrencies to finance new Alameda trading activity.
Early in 2021, Alameda may have been using Chinese cryptocurrency exchanges, but as of 2017, China formally forbade the operation of cryptocurrency exchanges there. In September 2021, China put into effect a total ban on cryptocurrencies, as was previously stated.
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