Originally published on: November 13, 2024
In a bold move, US prosecutors are seeking permission to seize cryptocurrency allegedly connected to bribes paid to Chinese officials by Sam Bankman-Fried, co-founder of FTX. The legal battle unfolded in a New York District Court on Nov. 12, where prosecutors claimed that a Binance account, now valued at around $18.5 million, was used to launder funds for bribes before FTX’s collapse in 2022.
The suit revealed that Chinese law enforcement froze two accounts held by Alameda Research on local crypto exchanges, containing $1 billion in crypto in 2021. Bankman-Fried allegedly sent a $40 million Tether (USDT) bribe to a private wallet, leading to the accounts being unfrozen shortly after. Prosecutors stated that Bankman-Fried continued to make substantial payments in cryptocurrency to fulfill the alleged bribe.
US authorities highlighted that five deposit accounts associated with the targeted account were used to conceal the bribe payments. The prosecutors detailed a consistent flow of incoming deposits and outgoing withdrawals, with daily transfers of Bitcoin (BTC) and stablecoins to other cryptocurrencies.
Former Alameda Research CEO, Caroline Ellison, testified that the total bribe amounted to approximately $150 million. The court subsequently ordered the seizure of the account during Bankman-Fried’s trial on Dec. 21, 2023.
As the legal battle continues, the account reportedly still holds various cryptocurrencies, including Solana (SOL), Cardano (ADA), XRP, Internet Computer (IC), and Avalanche (AVAX). Following Bankman-Fried’s conviction on seven felony counts and a 25-year prison sentence, the case has drawn attention to the complexities of crypto regulations and enforcement.
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