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FTX co-creator Sam Bankman-Fried (aka SBF) is currently dealing with four new claims surrounding the collapse of his cryptocurrency exchange.just sealed prosecution A New York federal court has accused SBF of cheating through both FTX and its linked Alameda Research hedge fund. The co-founders also allegedly violated federal campaign finance laws by using the names of two executives to make covert donations to Congress’ Super PAC.
Extended charges now include 12 counts.sources speaking with CNBC It alleges that if SBF is convicted, additional allegations could result in an additional 40 years in prison.
The SBF was arrested in the Bahamas on December 12 and quickly dropped plans to fight extradition to the United States. He has already pleaded not guilty to federal indictments, including multiple wire fraud counts. ) facing lawsuits fromProsecutors allege Bankman-Fried defrauded investors of about $2 billion, but the former CEO maintain He has never attempted fraud and does not consider himself criminally responsible for the downfall of FTX. Two of his executives, Caroline Ellison and Zixiao “Gary Wang,” pleaded guilty to their own fraud charges.
FTX wasn’t the only one to lose ground. Other major cryptocurrency brands such as Binance, Celsius and Terraform Labs have also filed varying degrees of criminal charges (against themselves or former executives), civil lawsuits and bankruptcies. But FTX and its former CEO remain the most prominent example of turmoil in the crypto industry.
The further indictments also reflect the federal government’s keenness to crack down on crypto assets and cryptocurrencies. Politicians in the House and Senate want the industry to be more tightly regulated, while agencies like the SEC, CFTC and Treasury want more fees and clearer rules.
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