SBF Charged With Paying $40 Million Bribe

FTX founder Sam Bankman-Fried was charged with directing $40 million in bribes to one or more Chinese officials to unfreeze assets relating to his cryptocurrency business in a rewritten indictment unsealed Tuesday. CBS News reports: The charge of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act means Bankman-Fried faces now faces a total of 13 charges after being arrested in the Bahamas last December and brought to the United States soon thereafter. The indictment said Chinese law enforcement authorities in early 2021 froze certain Alameda crypto-trading accounts on two of China's largest cryptocurrency exchanges. The accounts, it said, contained about $1 billion worth of crypto.

Bankman-Fried understood that the accounts had been frozen by Chinese authoritIes as part of an ongoing probe of a particular Alameda trading counterparty, the indictment said. After Bankman-Fried failed several attempts to unfreeze the accounts through the use of lawyers and lobbying, the 31-year-old ultimately agreed to direct a multimillion dollar bribe to try to unfreeze the accounts, the indictment said.

'Bankman-Fried and others sought to regain access to the assets to fund additional Alameda trading activity, in order to assist Bankman-Fried and Alameda in obtaining and retaining business,' court documents state. The bribe payment of cryptocurrency -- then worth about $40 million -- was moved from Alameda's main trading account to a private cryptocurrency wallet in November 2021 and the frozen accounts were unfrozen at about the same time, the indictment said.

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