Sam Bankman-Fried, the former CEO of the collapsed cryptocurrency exchange FTX, is facing new charges of illegal political donations and bank fraud conspiracy. Bankman-Fried had previously denied charges of defrauding investors and customers. FTX went bankrupt last year, leaving several users unable to access their funds. Bankman-Fried now faces a total of twelve criminal charges. A spokesperson for Bankman-Fried declined to comment on the latest accusations.
According to prosecutors, Bankman-Fried collaborated with two former FTX executives to make tens of millions of dollars in illegal donations to influence US politicians in favor of the company. The donations allegedly involved the use of straw donors or corporate funds to bypass contribution limits. Bankman-Fried instructed one executive to donate to left-leaning candidates and the other to Republicans, with many donations funded by his hedge fund Alameda Research and some from FTX customer funds.
Bankman-Fried had already pleaded not guilty to charges of using customer deposits to fund Alameda Research, purchase property, and make political donations. He was released on a $250 million bail package in December. However, he faces a potential sentence of more than 100 years in prison if convicted. A trial is set for October 2, according to Judge Lewis Kaplan.