Former cryptocurrency mogul and FTX founder Sam Bankman-Fried has been accused by authorities of violating multiple campaign finance laws, including donating to political candidates under other people’s names.
Bankman-Fried, who was arrested in the Bahamas on Monday and is expected to be extradited to the U.S., was accused of conspiracy to commit wire fraud, conspiracy to commit securities fraud, laundering money, and conspiring to “defraud the United States” via violating campaign finance laws, according to the unsealed indictment. He donated far in excess of the $25,000 limit entrenched in U.S. law, partially by donating under other people’s names.
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“From at least in or about 2020, up to and including in or about November 2022, in the Southern District of New York, and elsewhere, SAMUEL BANKMAN-FRIED … and others known and unknown, knowingly did combine, conspire, confederate, and agree together and with each other to defraud the United States, in violation of Title 18, United States Code, Section 371, and willfully and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against the United States by engaging in violations of federal law involving the making, receiving, and reporting of a contribution, donation, or expenditure, in violation of Title 52,” the indictment said.
The indictment also alleged that Bankman-Fried and “one or more” conspirators agreed to make contributions to candidates and committees in New York in the name of another person.
Bankman-Fried came under intense scrutiny after the collapse of his FTX cryptocurrency exchange, valued at $32 billion in a financing round before this year. It was the third-largest cryptocurrency exchange by volume, behind Binance and Coinbase. The collapse sent a shock wave through the cryptocurrency community and cost many their savings. Growing calls for the former billionaire to face justice were answered on Monday with his arrest by Bahaman police.
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The Securities and Exchange Commission detailed the extensive defrauding of investors in its indictment and used the occasion of his arrest to call for other cryptocurrency platforms to comply with U.S. regulations.
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” SEC Chairman Gary Gensler said in a press release. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”
