Federal authorities added a new indictment against Sam Bankman-Fried Monday accusing him of utilizing misappropriated client assets to donate over $100 million to candidates in the 2022 U.S. midterm elections.
This revelation comes as part of a fresh indictment against the FTX cryptocurrency exchange's founder, Reuters reported.
The fresh indictment accuses the onetime billionaire, 31, of seven instances of conspiracy and fraud linked to the exchange's downfall.
He had earlier asserted his innocence.
Having capitalized on the surge in cryptocurrency values, Bankman-Fried's wealth was once approximated at $26 billion.
He was a prominent contributor, primarily supporting Democratic nominees and initiatives.
Originally, the U.S. Attorney’s office in Manhattan had accused him of breaching U.S. campaign finance regulations. However, this allegation was retracted in late July after the Bahamas, where FTX is headquartered and where he was detained in December 2022, declared they had no plans to extradite him to the U.S. based on that specific charge.
Prosecutors, in a recent communication to U.S. District Judge Lewis Kaplan in Manhattan, hinted at an impending indictment.
They emphasized that it "will make clear that Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged.”
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