Former crypto bigwig SBF to face fresh charges days after a revoked bail

• Former crypto influencer – SBF will be facing new charges for using customers’ funds for political donations. 
• The FTX founder was jailed at Metropolitan Detention Center as his bail was revoked

The situation of FTX founder – Sam Bankman-Fried aka SBF – seems to be getting grim. The infamous crypto bigwig is facing fresh charges just days after having had his bail revoked. In the latest series of Sam Bankman-Fried versus the US Government case, the regulator moved to hold SBF accountable for the political donations. Furthermore, SBF made these donations when he held a significant position in the crypto market.

More trouble for the former crypto bigwig

The indictment alleges that SBF used stolen customers’ funds to make donations worth over $100 million. It claimed that SBF directed executives of the company to make donations to surpass the limits put on contributions, in order to “maximize FTX’s political influence”. Additionally, investors received the money via Almeda, FTX’s investment arm.

This was used as a means to lobby for regulation and legislation. Furthermore, to “make it easier for FTX to continue to accept customer deposits and grow”. The indictment claimed that, this, in turn, would continue to “allow the misappropriation scheme”. In addition, the filing also stated that the former CEO used these connections to portray his crypto exchange as a legitimate one.

Notably, this puts seven counts of conspiracy and fraud charges against Bankman-Fried. According to Reuters, the new filing states,

“He 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”

It should also be noted that SBF has previously pleaded not guilty to all eight criminal counts brought against him by the US Department of Justice. Furthermore, the hearing begins in October 2023.

Moreover, since introducing charges against Bankman-Fried, the US Government has dropped charges of violating US finance campaign laws. As of 14 August, the former crypto bigwig awaited the start of his trial at the Metropolitan Detention Center, awaiting the start of the trial.