- DOJ to seize $16M in FTX-linked crypto.
- Holdings mostly include Solana.
- Assets allegedly tied to bribes.
Two years after FTX’s catastrophic collapse, new details about its operations are still emerging. Recent recovery operations have once again put former CEO Sam Bankman-Fried’s (SBF) corruption allegations in the spotlight.
The Department of Justice (DOJ) recently moved to seize $16 million in FTX crypto assets. These assets were reportedly meant for bribes authorized by SBF.
DOJ Moves to Seize Alleged FTX Bribes
New details about FTX corruption continue to emerge. On Tuesday, November 12, the DOJ filed a civil forfeiture complaint to seize $16 million in assets related to the failed exchange. The funds on a Binance account include Solana, Internet Computer, Avalanche, Ripple, and Cardano. Solana accounted for over half of these assets, or $8.5 million.
Sponsored
Court documents allege that the funds were related to bribes authorized by Sam Bankman-Fried. The DOJ alleges that in November 2021, SBF authorized Alameda Research to transfer $40 million in USDT to bribe Chinese officials. At the time, FTX sought to unfreeze $1 billion of seized FTX’s crypto assets in China.
These assets made their way to various wallets in suspicious patterns, showing daily stablecoin transfers that were quickly converted to altcoins. These transactions ultimately led authorities to the Binance wallet, which still holds $16 million worth of crypto.
SBF Donated Millions to US Politicians
FTX’s attempts to bribe Chinese officials showcase the exchange’s broader pattern of financial impropriety and misuse of user funds. According to earlier reports, FTX lost $8.9 billion of user funds through a combination of direct theft and financial mismanagement.
According to court filings in the SBF case, prosecutors alleged that FTX insiders took $3.2 billion from the platform. SBF himself allegedly took $2.2 billion personally from the company’s accounts to buy luxury properties and fund his lifestyle.
If recovered, the $16 million from the Binance wallet will go toward compensating FTX victims. Even so, this sum is a drop in the bucket for FTX users.
On the Flipside
- Solana had significant ties to FTX, as the exchange was an early investor. Even in bankruptcy, FTX held billions of dollars in SOL tokens.
- Binance recently became a target of a $1.76 billion lawsuit by the FTX bankruptcy estate. The estate claims that FTX’s buyback of its shares from Binance was done using user funds and should be nullified.
Why This Matters
The latest FTX revelations bring attention to the extent of the corruption in the bankrupt FTX exchange. Moreover, if recovered, the funds will also go toward repaying the victims.
Read more about the latest in the FTX case:
FTX Reopens Old Binance Wounds with New $1.8 Billion Lawsuit
Read more about Solana’s latest fund:
Another ‘Microstrategy for Solana’ Drops: DeFi Tech Unveils SolFi
