SBF’s Woes Deepen: Chinese Official Bribe and Market Manipulation Allegations Surface

• Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, is accused of bribing a Chinese official with $40 million.
• Documents have also revealed extra charges against SBF related to fraud, money laundering, conspiracy and market manipulation.
• He has hired an all-star legal team to defend himself in court while funding his defense with funds borrowed from Alameda Research which went bust along with FTX.

SBF’s Woes Deepen

Sam Bankman-Fried, the founder of the fallen FTX exchange and current under house arrest at his parents‘ home, is now facing bribery allegations as leaked documents show he authorized a $40 million bribe to at least one Chinese government official.

Charges Against SBF

The lawsuit against Samuel Bankman-Fried was filed last year in the United States and includes charges such as fraud, money laundering, conspiracy, multiple breaches of capital market law, mishandling of user funds and price manipulation.

SBF Defending Himself

In order to proclaim his innocence after getting indicted last year, he came up with a $250 million bond after declaring bankruptcy. According to Forbes, SBF funded his legal defense through borrowed funds from Alameda Research – FTX’s sister company that went bust along with the exchange. His lineup of all-star lawyers are preparing for a trial starting in October 2023.

Chinese Denial

A representative of the Chinese Ministry of Foreign Affairs denied being aware of this attempted bribery by SBF.

Why It Matters

FTX played an important role in the global financial market being valued at $32 billion before its quick downfall started when it was discovered around $1.7 billion client funds were missing – unleashing a domino effect on the whole sector.