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

Sam Bankman Fried holds cash and puts a spell on a man.
  • Sam Bankman-Fried is accused of bribing a Chinese official with $40 million.
  • The bribe was supposed to help SBF gain access to trading accounts in China.
  • The shady founder of the fallen FTX exchange is currently under house arrest at his parents’ home.

There’s more trouble for the corrupt founder of what was once the second-largest cryptocurrency exchange, as leaked documents show extra charges. The lawsuit against Samuel Bankman-Fried was filed last year in the United States, and new evidence shows that he authorized a $40 million bribe to at least one Chinese government official.

SBF Preparing to Defend His Case

As the disgraced crypto mogul proclaimed his innocence after getting indicted last year, he somehow managed to come up with a $250 million bond after declaring bankruptcy.

According to Forbes, SBF funded his legal defense with funds borrowed from Alameda Research, FTX’s sister company that went bust along with the exchange. The two intertwined entities had no financial supervision and not even Bankman-Fried or Alameda’s former CEO Caroline Ellison knew how much money was in the reserves or how many people worked at the aforementioned firms.

SBF’s lineup of all-star lawyers is preparing for the trial starting in October 2023. They aim to prove SBF innocent against charges of fraud, money laundering, conspiracy, multiple breaches of capital market law, mishandling of user funds, price manipulation and now – bribery.

On The Flipside

  • A representative of the Chinese Ministry of Foreign Affairs denied being aware of the attempted bribery.

Why You Should Care

The American crypto exchange FTX played a key role in the global financial market. Valued at $32 billion at its peak, its quick downfall started once it was revealed that around $1.7 billion of client funds were missing, unleashing a domino effect on the whole sector.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.