The U.S. Department of Justice has filed a complaint seeking the seizure of more than $17.9 million in cryptocurrencies from a Binance account linked to former FTX CEO Sam Bankman-Fried’s alleged bribery of Chinese officials.
US Justice Department Moves to Seize Cryptocurrency Tied to Sam Bankman-Fried's Alleged Bribery to China
Prosecutors allege the funds are linked to a November 2021 incident in which Bankman-Fried directed a $40 million USDT transfer to free up about $1 billion in frozen crypto assets held on Chinese exchanges.
The complaint filed Tuesday alleges how Bankman-Fried facilitated bribes to secure the release of frozen funds through FTX's sister trading firm, Alameda Research.
Once the accounts were frozen, Bankman-Fried allegedly approved further payments in cryptocurrency to complete the bribe, according to prosecutors.
The bribe was reportedly laundered through several private wallets before ending up in a Binance deposit account.
This account holds a variety of digital assets, including Solana, Cardano, Ripple, Internet Computer, and Avalanche, which were initially valued at $8.6 million as of December 2023 but are currently worth around $17.9 million.
FTX’s dramatic collapse in November 2022 led to it filing for bankruptcy amid allegations of extensive mismanagement of the fund by Bankman-Fried and its executives.
Bankman-Fried was found guilty of all fraud charges in November 2023 and sentenced to 25 years in prison in March 2024.
*This is not investment advice.