The crypto company’s founder was charged with eight criminal counts, including money laundering and wire fraud conspiracy.
On Tuesday, December 13, federal prosecutors accused Sam Bankman-Fried, founder of FTX, of financial fraud, violating campaign finance laws, and money laundering.
Bahamas Chief Magistrate JoyAnn Ferguson-Pratt denied Bankman’s plea for bail on account of him being a flight risk.
Sam Bankman-Fried was arrested for swindling
According to the indictment, Bankman-Fried has been swindling FTX customers ever since 2019, using their deposits to make investments, and pay for Alameda Research’s expenses, which is his crypto hedge fund.
Speaking to the press, U.S. Attorney for the Southern District of NY, Damian Williams, said that this was one of the biggest financial frauds that have happened in the history of America.
The FTX founder is also accused of violating campaign finance laws. He has made millions in campaign contributions by disguising them to look like wealthy people were making them before the 2022 midterm elections,
Williams went on to say that Bankman-Fried also donated this stolen customer money to Democrat and Republican candidates. He then encouraged these elected officials to work with him to return these stolen funds to the victims.
Mark Cohen, Sam Bankman-Fried’s lawyer, released a statement saying they are reviewing the charges and all the legal options available.
Bankman-Fried faces a sentence of 115 years
The FTX founder is set to face a maximum prison sentence of 115 years if convicted.
According to the current CEO of FTX, the company has lost $8 billion of client money due to the absolute control of a small group of people.
Bankman-Fried has accepted his failings at FTX and apologized to the customers, but he doesn’t think he has done anything wrong.
FTX was founded by Sam Bankman-Fried in 2019 and became one of the largest crypto exchanges in the world. Bankman-Fried’s net worth just a year ago, according to Forbes, was settled at $26.5 billion. He was also a frequent donor to political campaigns and other causes as well.
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