US Moves To Seize Sam Bankman-Fried’s Crypto Linked to Alleged Bribery in China

Key Takeaways

• U.S. prosecutors aim to recover $40 million in bribes allegedly paid by Sam Bankman-Fried to Chinese officials.
• The bribe was used to unfreeze crypto wallets linked to Alameda Research.
• The ongoing FTX legal saga continues as authorities pursue assets connected to Bankman-Fried.

U.S. prosecutors have filed a new lawsuit in an ongoing effort to seize funds tied to Sam Bankman-Fried (SBF), the former CEO of the collapsed FTX crypto exchange.

The latest filing targets a multi-million dollar bribe allegedly paid by SBF to Chinese officials in 2021.

SBF’s Alleged Bribe and Frozen Crypto Accounts

In a court filing submitted on Nov. 12 in the Southern District of New York, prosecutors detailed how SBF allegedly paid $40 million in bribes to secure the unfreezing of crypto assets linked to his sister trading firm, Alameda Research.

These assets had been frozen by Chinese authorities, with wallets holding nearly $1 billion in digital currencies, including Solana, Cardano, Ripple, and others.

The bribe was reportedly paid in two installments: $28 million in USDT and $12 million in USDT once the frozen wallets were released.

According to the filing, these payments were channeled through multiple crypto wallets to obscure the transaction and hide its origin.

Binance Wallet Used To Launder Funds

The prosecution further alleged that a Binance account containing $8.6 million worth of crypto as of December 2023 was used to launder the bribe.

The bribe funds were transferred to five linked deposit accounts that helped conceal the origin and destination of the payments. As of late 2023, the bribe’s value had reportedly surged to $185 million due to favorable market conditions.

U.S. prosecutors are seeking the forfeiture of all assets connected to SBF under Title 18 of the U.S. criminal code, continuing their relentless pursuit of justice in the aftermath of the FTX scandal.

The FTX Collapse and Ongoing Legal Battles

FTX, once valued at over $30 billion, collapsed in November 2022, leaving millions of investors facing losses.

Bankman-Fried and several key associates have been charged with money laundering, fraud, and criminal mismanagement.

In an effort to recover assets for investors, the FTX estate has initiated lawsuits against former business partners and associates, with plans to begin distributing funds to affected investors by the end of this year.

However, this process could take up to two years to complete.

As investigations and legal proceedings continue, U.S. authorities remain focused on seizing assets linked to SBF’s alleged criminal activity.

The latest lawsuit underscores the depth of the corruption tied to the FTX collapse and the ongoing efforts to hold those responsible accountable.