• Federal Prosecutors have reportedly accused disgraced former FTX head Sam Bankman-Fried of stealing customer funds to make political campaign donations.
• The indictment alleges that the political contributions were made to boost his influence to more effectively lobby Congress and regulatory agencies for rules that would help FTX’s business grow.
• Bankman-Fried has pleaded not guilty and is scheduled to go on trial on Oct. 2.
Federal Prosecutors Accuse Sam Bankman-Fried of Stealing Customer Funds
Federal prosecutors have reportedly accused disgraced former FTX head Sam Bankman-Fried of stealing customer funds to make political campaign donations ahead of the 2022 U.S. midterm elections. An indictment amended on Monday alleges that the political contributions were made to boost his influence in order to lobby Congress and regulatory agencies for rules that would benefit FTX’s business growth.
Scheme To Conceal Source Of Funds
In addition, federal prosecutors accuse Bankman-Fried of scheming with two other FTX executives to conceal the source of funds and get around campaign finance contribution limits.
Bankman-Fried Pleads Not Guilty
Bankman-Fried has pleaded not guilty and is scheduled to go on trial on Oct. 2 facing seven charges of wire fraud, securities fraud, commodities fraud, and money laundering for allegedly lying to customers and commingling their funds deposited into FTX accounts.
Charges Dropped Due To Diplomacy Issues With Bahamas
Last month, prosecutors announced they would drop a separate count on conspiracy to violate campaign finance laws due to diplomacy issues with the Bahamas. Last week prosecutors stated an amended indictment will make clear that Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged against him by federal prosecutors.
Bankman-Fried Taken Into Prison Following Allegations Of Witness Tampering
Last week, a judge revoked Bankman-Fried’s bail after he was accused by prosecutors of attempting witness tampering, resulting in him being taken into prison pending his trial date in October 2021.