- The Sam Bankman-Fried case is taking a new turn. Recently, the former CEO of FTX got a sentence that will see him in prison.
- But more development came up after new indictments were made against the former CEO of the failed exchange. Apparently, SBF used some of the money belonging to customers to pay some United States politicians.
Sam Bankman-Fried was the former CEO of FTX. FTX is the crypto exchange that went into shambles due to severe mismanagement by the creators. Apparently, SBF is the creator and founder of this failed crypto exchange. But the manner in which he managed it made it fail. In line with the failure, billions of dollars of customers’ funds went down the drain. This made them file a lawsuit against the former CEO. Recently, they made a ruling that saw him going back to prison. Now, another problem is in the head of SBF as a new indictment comes up. Apparently, the plaintiffs of this case say SBF spent millions of dollars on politicians.
Sam Bankman-Fried Accused of Making Illegal Political Donations
- Sam Bankman-Fried was one of the people that rode the popularity of the crypto industry to make billions of money. Apparently, the bull market from the 2020s to early 2022 paid off well for SBF. He made billions of dollars and once had a whopping 26 billion dollar fortune. But all these are bygone after the failure of FTX. Legal cases started piling up, causing the former CEO to spend most of his days in court.
- After paying a $250 million bond, SBF largely stays in his parents’ Palo Alto, California, home due to house arrest. Here, he is not allowed access to any illegal or even legal connection to the internet. Apparently, SBF only gets access to white-listed websites like Wall Street Journal or CNN. The court case dragged on until SBF was finally freed from house arrest. Now he will spend his days at the notorious New York City MDC Brooklyn. This prison is known for having some of the worst conditions. But now, a new problem awaits. Apparently, SBF made several illegal donations to politicians with FTX customers’ money.
SBF Face Trials Over More Than $100 Million Illegal Donations to Politicians
- A new report shows that Sam Bankman-Fried evaded contribution limits by donating to Democrats and Republicans. Furthermore, he made FTX employees conceal where this money was coming from.
- According to court papers and Federal Elections Commission data, some of the employees he used for this endeavor are Nishad Singh and Ryan Salame. On the part of Nishad Singh, he testified in court he made donations worth $9.7 million to Democratic candidates. On the other hand, Salame, the former co-CEO of FTX’s Bahamian unit, was said to give a whopping $24 million to Republican politicians. Several other donations which SBF made himself add up to these $100 million estimates.
Conclusion
Sam Bankman-Fried was the next big thing in the crypto industry before his empire crumbled. Back then, many even tipped FTX to overtake Binance regarding market share. But everything is down the drain, and so is SBF. After receiving a prison sentence, a new indictment came up. Apparently, SBF used customers’ money to bribe politicians.
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