Sam Bankman-Fried Accused of Stealing Customer Funds To Use for Political Campaign Donations: Report

Federal prosecutors have reportedly accused disgraced former FTX head Sam Bankman-Fried of stealing customer funds to make political campaign donations.

According to a new Reuters report, federal prosecutors are accusing Bankman-Fried of making $100 million worth of political campaign contributions ahead of the 2022 U.S. midterm elections by using customer funds.

As quoted by Reuters, an indictment amended on Monday alleges that the political contributions were made to boost his influence to more effectively lobby Congress and regulatory agencies for rules that would help FTX’s business grow.

“[Bankman-Fried] leveraged this influence, in turn, to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow.”

Federal prosecutors also reportedly accuse Bankman-Fried of scheming with two FTX executives to conceal the source of funds and to get around campaign finance contribution limits.

Bankman-Fried faces seven charges of wire fraud, securities fraud, commodities fraud and money laundering for an alleged multibillion-dollar scheme that included lying to customers and commingling their funds deposited to FTX.

He no longer is facing a separate count on conspiracy to violate campaign finance laws. Federal prosecutors said last month they would drop that charge due to diplomacy issues with the Bahamas.

Last week, prosecutors said the amended indictment would “make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged,” according to Reuters.

Bankman-Fried has pleaded not guilty and is scheduled to go on trial on Oct. 2. Last week, a judge revoked his bail and he was taken into prison following prosecutors’ allegations that he attempted to tamper with a witness.

 

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