A Superseding Indictment Filed Against Sam Bankman-Fried

The founder of FTX, Sam Bankman-Fried facing four new charges in a new unsealed indictment over FTX collapse. The new charging document lays out in greater detail Bankman-Fried’s allegedly fraudulent conduct related to his crypto exchange FTX and an associated hedge fund Alameda Research.

What is inside in the superseding indictment?

On Thursday, the four new criminal charges related to commodities fraud and making unlawful political contributions added in a superseding indictment filed in New York federal court.

According to a CNBC report, Bankman-Fried could face an additional 40 years in prison if convicted in the case. He was also accused of “multiple schemes to defraud.” However, the new charging document lays out in greater detail Bankman-Fried’s allegedly fraudulent conduct related to FTX and Alameda Research. It must be noted that both of the firms collapsed late last year.

The filed indictment also provides new details of hundreds of political donations that Bankman-Fried allegedly directed in violation of federal campaign finance laws. He is accused of stealing FTX customer deposits and using billions of dollars of those stolen funds to support the operations and investments of FTX and Alameda. Also to fund speculative investments, making charitable contributions, and to enrich himself, as per the indictment.

As per the new indictment, which was unsealed in the United States District Court in Manhattan, Bankman-Fried tried “to purchase influence over cryptocurrency regulation in Washington, D.C., by steering tens of millions of dollars in illegal campaign contributions to both Democrats and Republicans.”

Notably, Bankman-Fried was known for his major donation to Democrats before criminal charges. Currently, he is free on a $250 Million personal recognizance bond after being first charged in late last year. But has pleaded not guilty in the case.

Meanwhile, the new indictment has put more legal pressure on Bankman-Fried. On the other hand his associates, FTX co-founder Gary Wang and former CEO of Alameda, Caroline Ellison pleaded guilty in December 2022 to multiple fraud and other charges. Both of them are cooperating with the United States attorney’s office in Manhattan against Bankman-Fried.

The latest indictment accuses Bankman-Fried of securities fraud, wire fraud, and several conspiracy counts that are related to wire fraud on FTX customers and Alameda’s lenders; illegal campaign contributions; money laundering; operating an unlicensed money transmitting business and bank fraud.

In a statement on the latest indictment Manhattan U.S. Attorney Damian Williams stated that they are “hard at work and will remain so until justice is done.” The document added in detail about many claims and how Bankman-Fried alleged;y operated the illegal scheme.

Furthermore, an ethics watchdog group has also asked the Federal Election Commission to investigate Bankman-Fried for alleged “serious violations” of election law.