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America December 13, 2022 2 mins read

FTX’s Sam Bankman-Fried Faces 8 Criminal Charges

America ı By Rochdi Rais

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FTC-lawsuit-Kochava-geolocation data

US federal prosecutors in New York have charged former FTX CEO Sam Bankman-Fried with eight criminal charges, including fraud for allegedly using FTX funds to support his crypto hedge fund Alameda Research. 

In charges unsealed Tuesday morning, a grand jury indictment laid out the eight accusations against Bankman-Fried, alleging he directed FTX customer funds to "pay expenses and debts of Alameda Research." 

Here is a list of the charges in the indictment: 

  • Conspiracy to commit wire fraud on customers
  • Wire fraud on customers 
  • Conspiracy to commit wire fraud on lenders 
  • Wire fraud on lenders 
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud 
  • Conspiracy to commit money laundering
  • Conspiracy to defraud the United States and violate the campaign finance laws

Prosecutors accused Bankman-Fried of intentionally securing funds "by means of false and fraudulent pretenses, representations and promises," and alleged his victims were lenders and FTX customers.

In allegations that he conspired to violate US campaign finance laws, prosecutors targeted his political donations, including to candidates running for federal positions. 

Otherwise, details about Bankman-Fried's alleged criminal conduct were sparse in the filing, which enumerated the counts against him in mostly boilerplate language that laid out the basis for the charges. 

 

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Rochdi Rais
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Rochdi Rais

Rochdi Rais is the chief content officer and financial and legal writer at USA Herald. He has been writing about finance, law, cryptocurrency and U.S. politics for years with over +4000 articles published during his career.

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