Sam Bankman-Fried, the former CEO and co-founder of cryptocurrency exchange FTX, has been hit with four new charges in connection to a multi-billion dollar fraud case. The new indictment was unsealed on Wednesday, 72 days after Bankman-Fried was originally indicted by a federal grand jury in Manhattan.
The charges brought against Bankman-Fried now total twelve, and include conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, operating an unlicensed money transmitter, conspiracy to commit bank fraud, defrauding customers in connection to the purchase and sale of derivatives, making unlawful political contributions, and defrauding the Federal Election Commission.
The newly revised indictment alleges that Bankman-Fried “exploited the trust that FTX customers placed in him and his exchange” and “used billions of dollars in stolen funds for a variety of purposes.” It also accuses him of corrupting the operations of FTX and Alameda Research, another cryptocurrency company he founded and controlled.
According to the indictment, Bankman-Fried “perpetrated this multibillion-dollar fraud through a series of systems and schemes that allowed him, through Alameda, to access and steal FTX customer deposits without detection.” The alleged fraud also involved defrauding customers in connection to the purchase and sale of derivatives, and making unlawful political contributions.
The charges of operating an unlicensed money transfer business and conspiracy to commit bank fraud are the latest additions to Bankman-Fried’s case. It is unclear at this time whether or not he will face additional charges.
Bankman-Fried, who stepped down as CEO of FTX shortly after his initial indictment, has denied all allegations against him. His lawyers have argued that he is being unfairly targeted by prosecutors, and that the charges against him are politically motivated.
The case against Bankman-Fried has drawn widespread attention from the cryptocurrency community, with many expressing concern about the potential impact it could have on the industry as a whole. Some have even suggested that the case could lead to increased regulation of cryptocurrencies and their exchanges.
The trial is expected to begin in the coming months, and could last for several years. Bankman-Fried, who is currently out on bail, could face up to 20 years in prison if convicted on all charges.