Sam Bankman-Fried is accused of embezzling $2.2 billion from FTX's coffers

by   |  VIEW 622

Sam Bankman-Fried is accused of embezzling $2.2 billion from FTX's coffers
Sam Bankman-Fried is accused of embezzling $2.2 billion from FTX's coffers (Provided by Financial World)

Sam Bankman-Fried was arrested in December and faces 12 criminal charges. These include allegations of defrauding FTX customers, investors and creditors, as well as conspiracy to commit such fraud. SBF received approximately $2.2 billion in payments and loans from FTX-related entities, primarily from Alameda Research, his creditors and FTX's new directors said in a lawsuit hearing that sees accused the former CEO of several counts.

Collectively, other Bankman-Fried executives are reported to have received an additional $951 million in total, including $839 million to three executives who have already pleaded guilty to several fraud charges. As summarized by the Financial Times: "Bankman-Fried and five members of his entourage moved a total of $3.2 billion into their personal accounts in the form of payments and loans, the funds came mainly from Alameda Research, sister company of FTX , and only formally independent, which operated as the trading division of the exchange.

Sam Bankman-Fried: new heavy allegations came

In addition to the aforementioned amounts, $587 million was also transferred to Nishad Singh, $246 million to Zixiao Gary Wang, $87 million to Ryan Salame, $25 million to John Samuel Trabucco and $6 million to Caroline Ellison.

Singh, Wang and Ellison have all admitted to various types of fraud, have pleaded guilty and are actively cooperating with prosecutors in hopes of getting a lesser sentence. Bankman-Fried's $250 million bail has come under scrutiny, especially following the revelation that he had attempted to contact possible witnesses during the trial.

Furthermore, he was temporarily banned from using the VPN after being accused of using it twice, on January 29 and February 12. Christian Everdell, Bankman-Fried's attorney, assured the court that to address the judge's concerns he will work with prosecutors on a new proposal.

According to Cointelegraph, Kaplan has proposed banning Bankman-Fried from using smartphones, tablets, computers, and any gaming platform or device that allows for chat and voice communication.

Sam Bankman-fried Ftx