Breaking: FTX Founder Sam Bankman-Fried Hit with New Charges and Faces Decades More in Prison

FTX founder Sam Bankman-Fried faces potentially decades more in prison as new charges are added to superseding indictment, including conspiracy to operate an unlicensed money transmitting business and conspiracy to make unlawful political contributions and defraud the Securities and Exchange Commission.

FTX founder, Sam Bankman-Fried, is facing four additional charges in a new indictment filed by the US Attorney’s Office for the Southern District of New York (SDNY), which could add up to an additional 40 years in prison on top of the 115 years he already faced if convicted.

The new indictment replaces the prior two and adds one count of conspiracy to operate an unlicensed money-transmitting business and another count of conspiracy to make unlawful political contributions and defraud the Securities and Exchange Commission.

Democrats Scramble As FTX Asks For Political Donations Back Under Legal Threat

The indictment revealed that political donations were made in the names of two top FTX executives, referred to as “CC-1” and “CC-2,” and former FTX executive Ryan Salame was identified as a top political donor to Republicans.

Bahamian authorities claimed in FTX bankruptcy proceedings that Salame alerted them to alleged fraudulent transactions involving FTX and Bankman-Fried’s hedge fund, Alameda Research, ahead of the collapse. A source told FOX Business that Nishad Singh, another FTX executive, is currently cooperating with the prosecution.

The new charges arrive as Bankman-Fried’s bail modifications are under review regarding his communication privileges. Prosecutors raised concerns that Bankman-Fried might use encrypted messaging apps or virtual private networks to tamper with witnesses. Judge Lewis Kaplan, who is overseeing the case, already questioned the prosecution on why they did not want Bankman-Fried to await trial behind bars.

FTX Sam Bankman-Fried Wants His Political Donations RETURNED

Bankman-Fried is currently on house arrest at his parents’ home in Palo Alto, California, on a $250 million bond. He has already pleaded not guilty to the previous eight charges, and his trial is set to begin in the fall. The added counts could present a new challenge for Bankman-Fried’s defense team in their effort to paint him in a good light. The US attorney for the SDNY, Damian Williams, said in a statement:

“We are hard at work and will remain so until justice is done.”

Alexander J. Williams III