New criminal charges slapped on FTX founder Bankman-Fried

Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange was hit with new criminal charges on Thursday (February 24). The expanded indictment now accuses Bankman-fried of conspiring to make more than 300 illegal political donations. He now faces 12 criminal charges. Four out of them are for fraud and for conspiracy.

Prosecutors have accused Bankman-Fried of stealing billions of dollars in FTX customer funds to plug losses at Alameda Research, his crypto-focused hedge fund.

The new charges increase pressure on Bankman-Fried, a former billionaire, two of whose former top lieutenants have pleaded guilty.

Bankman-Fried is also trying to stay out of jail, after his online activity since his arrest prompted U.S. District Judge Lewis Kaplan, who oversees the case, to signal a willingness to revoke his $250 million bail package.

There was no immediate comment from Bankman-Fried.

The new indictment said Bankman-Fried conspired with two former FTX executives to donate tens of millions of dollars in order to influence lawmakers to pass legislation favorable to the company.

Those donations were unlawful because they were made with "straw" donors or corporate funds, enabling Bankman-Fried - one of the largest donors to Democrats in the 2022 midterm elections - to evade contribution limits, prosecutors said.

(With inputs from agencies)

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