FTX Founder Sam Bankman-Fried Still Faces Campaign Finance Charge, Prosecutors Say

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Federal prosecutors in New York signaled their intention to hold embattled crypto executive Sam Bankman-Fried accountable for alleged campaign finance violations despite dropping the charge last month on a technicality.

FTX founder Sam Bankman-Fried is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas, Dec. 13, 2022Federal prosecutors in New York on Tuesday signaled their intention to hold embattled crypto executive

Among those allegations, the charges included campaign finance violations accusing Bankman-Fried of seeking influence in Washington and in state capitals by improperly using customer and investor money to make political donations., where Bankman-Fried was arrested, said they had not agreed to extradite him based on that count.

"The defendant's use of customer deposits to conduct a political influence campaign was part of the wire fraud scheme charged in the original indictment. And as part of the originally charged money laundering scheme, the defendant also concealed the source of his fraudulent proceeds through political straw donations," the letter added.

Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, July 26, 2023.Bankman-Fried stepped down from his role at FTX in November 2022 amid a rapid collapse that ended with the company declaring bankruptcy. Prosecutors charged Bankman-Fried the following month with an array of alleged crimes centered on a scheme to defraud investors.

 

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