Sam Bankman-Fried used $100 million in stolen FTX funds for political donations, US says

economictimes.indiatimes.com:

FTX cryptocurrency exchange to make more than $100 million in political campaign contributions before the 2022 U.S. midterm elections, federal prosecutors said on Monday. An amended indictment accused the 31-year-old former billionaire of directing two FTX executives to evade contribution limits by donating to Democrats and Republicans, and to conceal where the money came from.

«He leveraged this influence, in turn, to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow,» the indictment said. Bankman-Fried faces seven counts of conspiracy and fraud over FTX's collapse, though the indictment no longer includes conspiracy to violate campaign finance laws as a separate count. Federal prosecutors in Manhattan said last month they would drop that charge after the Bahamas, where FTX was based and where Bankman-Fried was arrested in December 2022, said it never intended to extradite him on that count.

Instead, prosecutors told U.S. District Judge Lewis Kaplan last week that a new indictment would «make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged.» Mark Botnick, a spokesman for Bankman-Fried, declined to comment.

Bankman-Fried has previously pleaded not guilty to stealing billions of dollars in FTX customer funds to plug losses at Alameda Research, his crypto-focused hedge fund. Kaplan jailed him last Friday ahead of his Oct. 2 trial, after finding probable cause that Bankman-Fried tampered with witnesses.