• Sam Bankman-Fried (SBF), the former FTX boss, has been charged by the DOJ for allegedly using $100 million of stolen customer funds to bankroll political campaigns.
• SBF allegedly targeted both Democrats and Republicans with his donations in order to influence crypto regulations.
• The trial is set to begin on October 2nd, and SBF faces 7 out of 8 counts he was originally charged with.
Charges Filed Against SBF
The Department of Justice has brought formal charges against Sam Bankman-Fried (SBF), the former FTX boss, for allegedly using $100 million of stolen customer funds to finance political campaigns before the 2022 U.S. midterm elections. The prosecution claims that SBF siphoned customer funds from FTX through its sister company Alameda Research and deposited them into personal bank accounts of FTX directors. Additionally, SBF directed FTX executives to make campaign contributions under their name in order to exceed contribution limits and increase the exchange’s political influence.
Political Influence Attempted
According to court documents, SBF wanted Congress and regulatory agencies to pass legislation that would enable FTX to accept customer deposits in the U.S., thereby allowing it to grow continuously. He reportedly targeted both Democrats and Republicans with his donations in a bid achieve this goal.
Trial Date Set For October 2nd
In a superseding indictment, SBF will face seven counts out of eight which he was originally charged with last December 2022. His trial is set to begin on October 2nd at Manhattan U.S Attorney’s office where prosecutors will present evidence against him regarding all allegations made so far in this case .
Previous Charges Dropped by Bahaman Authorities
The DOJ had previously charged SBF for flouting campaign finance laws but later dropped those accusations following consultations with Bahaman authorities due to a technicality issue that they could not overcome at that time . However , after discovering a workaround , the prosecution moved forward with this new superseding indictment based on more concrete evidence against him .