Big Trouble for the Big Boss: FTX Founder Hit with New Fraud Charges

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FTX founder Sam Bankman-Fried faces an increased prison sentence of up to 155 years if convicted of the new fraud charges brought against him.

In a shocking turn of events, the founder and CEO of crypto trading platform FTX, Sam Bankman-Fried (also known as SBF),  has been hit with new fraud charges.

Prosecutors accused him of defrauding thousands of investors and deceiving them of billions of dollars. He created a public image of being a reliable “saviour of the cryptocurrency industry” with the help of Super Bowl ads featuring celebrities and significant donations to politicians.

A refreshed indictment was unsealed in Manhattan federal court, which revealed four new charges, including securities fraud and conspiracy fraud counts. The indictment had been returned a day earlier.

As he had done before, U.S. Attorney Damian Williams suggested through a statement that prosecutors were still working on their case.

“We are currently working ceaselessly and will persist until justice is served,” Attorney Williams said.

Bankman-Fried’s spokesperson refused to provide a statement.

According to authorities, the prison sentence that Bankman-Fried could receive has increased from 115 to 155 years due to new charges.

Prosecutors added new charges, bringing the total number of counts in the indictment to 12. The added details in their story provided a more comprehensive explanation of what occurred to 

FTX, Bankman-Fried’s worldwide cryptocurrency exchange, and its associated cryptocurrency trading hedge fund, Alameda Research.

Bankman-Fried is accused of carrying out fraudulent schemes from 2019 to last November that affected FTX customers, investors, financial institutions, lenders, and the Federal Election Commission.

Bankman-Fried, arrested in the Bahamas in December, was later brought to the United States. Before this, FTX had filed for bankruptcy on November 11 due to running out of money, similar to a bank run in the cryptocurrency world.

He has been granted a personal recognisance bond of $250 million. He can be released from custody on the condition that he wears an electronic monitoring device and lives at his parents’ residence in Palo Alto, California.

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