FTX Founder Faces Additional Charges... Total 12 Counts, Up to 115 Years Sentence

[Asia Economy New York=Special Correspondent Joselgina] Additional charges have been confirmed against Sam Bankman-Fried, the founder of FTX, one of the world's top three virtual asset exchanges, who has been indicted on fraud and other charges. If all the charges are proven, he could face up to 115 years in prison.

According to the Wall Street Journal (WSJ) and others, on the 23rd (local time), the New York federal prosecutors submitted a new indictment to the federal court adding four more charges against Bankman-Fried.

[Image source=Reuters Yonhap News]

Previously, prosecutors had indicted Bankman-Fried on eight charges including fraud under criminal law, internet banking fraud, money laundering, and illegal election funding. With the addition of four more charges, the total number of charges against Bankman-Fried has increased to 12. If all charges are recognized by the court, the maximum sentence he could face has increased from the original 115 years to 155 years.

Bankman-Fried is understood to have raised billions of dollars from FTX investors and diverted them to Alameda Research, an affiliate, then used the funds for undisclosed venture investments, luxury real estate purchases, and large political donations. Prosecutors pointed out that he deceived customers and investors by portraying himself as a trustworthy and law-abiding figure during the promotion of FTX.

Additionally, the indictment includes allegations that Bankman-Fried lied to U.S. financial officials about the actual entities behind FTX accounts to avoid extensive due diligence and regulatory requirements related to virtual assets. Furthermore, he is accused of involvement in illegal election funding and attempting to conceal the sources of tens of millions of dollars in donations to both the Democratic and Republican parties. WSJ reported, "The new indictment raises detailed allegations regarding the purpose of donations aimed at gaining political influence in Washington, including regulatory policies on virtual assets."

Earlier, Bankman-Fried repeatedly denied the fraud and other charges brought against him. After being extradited to the United States in January, he was released on a $250 million bail condition and placed under house arrest at his parents' home in Palo Alto, California.

This content was produced with the assistance of AI translation services.