Federal Grand Jury in Manhattan Indicts FTX Co-Founder. Bahamian Magistrate Denies SBF’s Bail

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The Southern District of New York (SDNY), attorney Damian Williams and the SDNY prosecutor’s Office revealed that Sam Bankman-Fried, co-founder of FTX, was indicted for “fraud money laundering, and campaign finance offenses.” Williams, a SDNY attorney, stated that the case was not about “mismanagement of poor oversight” but rather of “intentional Fraud, plain and simple.”
Attorney Williams and the SDNY Prosecutor’s Office have charged SBF with 8 financial crimes
On December 13, 2022, a federal grand jury in Manhattan indicted Sam Bankman-Fried (SBF). A press release by the SDNY Department of Justice (DOJ), details that SBF is charged with “conspiracy for wire fraud, wirefrau, conspiracyto commit commodities fraud and conspiracy to do money laundering.”
According to the SDNY DOJ Indictment, SBF faces up to 165 years imprisonment. Investigators also note that “Bankman-Fried” and his co-conspirators have been involved in a scheme to defraud customers at FTX. They misappropriated billions of dollars from customers’ funds.
The DOJ also claims that SBF “allegedly used billions upon billions of dollars of FTX customers funds for his personal use, and to make investments, and millions upon millions of dollars worth of political contributions to federal candidates and committees.” The DOJ’s Manhattan team reported the news following the U.S. Securities and Exchange Commission (SEC) charges against SBF and the Commodity Futures Trading Commission lawsuit.
Both the CFTC and SEC charges allege that FTX and BFX executives have been accused of fraud from day one. In a statement, Damian Williams, SDNY attorney, stated that he believes the fraud to be deliberate. In a DOJ press release, Williams stated that FTX collapsed one month ago, causing billions in losses to its customers and lenders as well as investors. Williams also added:
A federal grand jury in New York indicted the former chief executive officer and founder of FTX. He was charged with crimes related the the spectacular downfall of the one-time cryptocurrency exchange. This includes fraud on customers, investors and lenders as well as our campaign finance system. This was not a case involving poor oversight or mismanagement, but intentional fraud, as today’s charges show.

Interestingly, Sam Bankman Fried is the only person indicted in the SEC, CFTC and SDNY DOJ cases. Caroline Ellison, ex-Alameda executive, is not named. There have been rumors that Ellison may be involved in the snatching of SBF. According to reports, Bankman Fried’s attorney claimed that SBF had “suffered from insomnia, depression, and ADD for more than a decade” and that his legal team would like SBF released on bail.
According to the SDNY DOJ press release on Tuesday, Michael J. Driscoll (FBI’s assistant director for the FBI New York Field Office) warned other financial operators that if they “deceive or defraud” customers, “the FBI will be persistent in our efforts towards bringing you to justice.” Reuters reported that SBF was denied bail by the Bahamian magistrate who was in charge of the case. Reuters revealed that Bankman-Fried will be sent to the Bahamas Department of Correction until February 8, [the] judge said.
What did you think of the SDNY prosecutor’s press release regarding the charges against SBF What do you think of the Bahamian judge refusing bail to SBF? Please comment below to let us know your thoughts on this topic.