Sam Bankman-Fried allegedly bribed one Chinese official with $40 million

Former cryptocurrency mogul Sam Bankman-Fried has been hit with another federal charge: bribery.

In a superseding indictment unsealed Tuesday, federal prosecutors accused Bankman-Fried of bribing a government official in China.

According to the new indictment, Bankman-Fried successfully bribed at least one Chinese government official with a $40 million payment in 2021.

Former FTX chief executive Sam Bankman-Fried leaves Manhattan federal court in New York on Jan. 3, 2023.
Former FTX chief executive Sam Bankman-Fried leaves Manhattan federal court in New York on Jan. 3, 2023.Ed Jones / AFP - Getty Images file

Bankman-Fried is awaiting trial after being charged with a host of crimes related to the mismanagement and collapse of FTX, previously one of the world’s largest cryptocurrency firms, which he co-founded, as well as his hedge fund, Alameda Research. 

A spokesperson for Bankman-Fried declined to comment. A spokesperson for China's embassy in Washington, D.C. declined to comment.

After Chinese authorities froze several Alameda accounts worth more than $1 billion, Bankman-Fried directed an employee to make bribery payments to at least one government official, the indictment says. The Alameda accounts were held in two major Chinese cryptocurrency exchanges.

"After confirmation that the Accounts were unfrozen, BANKMAN-FRIED authorized the transfer of additional tens of millions of dollars in cryptocurrency to complete the bribe," it says.

The alleged bribe appears to have been a last resort. Bankman-Fried initially tried several other methods to unfreeze the funds, the indictment says. Those tactics included hiring attorneys to lobby for him in China and opening accounts on those Chinese exchanges using the personal information of several unnamed people who were unaffiliated with his companies.

The bribery allegation is the most recent in a growing list of criminal charges that Bankman-Fried faces. He was arrested in December by U.S. authorities and extradited from the Bahamas to the U.S.

He was indicted by a grand jury in the Southern District of New York with a variety of crimes as part of what the Securities and Exchange Commission called "a yearslong fraud."

He has also been charged with making illegal campaign contributions.

Under new leadership, FTX declared bankruptcy and is in the process of unwinding the business and recovering its remaining assets.

Bankman-Fried pleaded not guilty to eight counts of wire fraud, securities fraud and conspiracy. He is out on bail.

 On Tuesday, U.S. District Judge Lewis Kaplan approved new bail conditions, allowing him access to a new phone and a laptop with limited functionality, according to court documents. 

On the new phone, Bankman-Fried will be able only to send SMS text messages and make voice calls, documents said.  

He also must turn over his existing laptop to his lawyers for a “new laptop,” which restricts his usage to pre-approved websites, like DoorDash and Amazon, according to court documents. 

The judge ordered that Bankman-Fried is “prohibited from using any other cellphones, tablets, computers, video games (including video game platforms and hardware) that permit chat or voice communication, or ‘smart’ devices with Internet access (collectively, ‘Prohibited Electronic Devices’).”  

Bankman-Fried’s parents, meanwhile, agreed to sign sworn affidavits not to bring prohibited electronic devices into their home or share passwords to their electronic devices with their son, court documents show. 


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