DOJ seeks $16 million in Binance crypto over FTX bribery allegations involving SBF

The United States Department of Justice (DOJ) has filed a civil forfeiture complaint to seize about $16 million worth of cryptocurrency in a Binance account.

This action is the result of a years-long investigation into alleged illegal activities linked to alleged bribery schemes involving FTX founder Sam Bankman-Fried, also known as SBF.

The alleged bribery plan

The root of the DOJ case goes back to November 2021, when Bankman-Fried allegedly authorized a $40 million payment to Tether (USDT) through wallets belonging to FTX’s sister company, Alameda Research.

In documents it filed on November 12, the DOJ claimed that SBF intended the payments as a bribe to unnamed Chinese officials to facilitate the release of $1 billion in crypto belonging to Alameda, which had been frozen in two digital asset exchanges based in China.

The documents also allege that the money was funneled through several private wallets before landing at the Binance address now targeted by the Department of Justice. The wallet was flagged for suspicious activity after authorities observed near-daily deposits of Bitcoin (BTC) and stablecoins, which were then quickly converted into other cryptocurrencies through over-the-counter (OTC) transactions.

Upon receiving the bribe, US authorities claim Chinese officials unfroze Alameda’s funds, with SBF apparently greenlighting additional payments of tens of millions of dollars.

When she testified against SBF in 2023, former Alameda CEO Caroline Ellison testified that the alleged bribe amounted to more than $100 million.

Bankman-Fried is currently serving a 25-year sentence after being indicted by a New York grand jury on multiple counts of fraud and conspiracy related to the collapse of FTX.

The value of the assets doubled after the recent market recovery

Some of the deposits into the account involved huge sums, including nearly $78 million in cryptocurrency received on December 4, 2023. More than $59 million was later withdrawn, leaving about $8.6 million in various cryptocurrencies, including Solana (SOL), Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP) and Cardano (ADA).

After the recent jump in the prices of several cryptocurrencies, including several held in the account in question, the total value of the stake has increased to more than $16 million, and SOL alone accounts for more than half of that amount, around $8.5. millions

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