- The U.S. Department of Justice has accused Sam Bankman-Fried of using customer money for political donations.
- The former head of FTX may have spent $100 million on a campaign program.
The United States Department of Justice alleges that former FTX exchange CEO Sam Bankman-Fried used customer money for political donations. Decrypt reports this, citing the agency.
In a new indictment, the U.S. Justice Department said the 31-year-old Bankman-Fried, who is back in prison, “misappropriated FTX customer deposits for third-party purposes.”
The agency said he used more than $100 million in political support for both Democrats and Republicans ahead of the U.S. midterm elections in 2022.
In July 2023, prosecutors dropped all charges of improper campaign finance against Bankman-Fried. However, last week, law enforcement officials said they would proceed with the case on concurrent charges of fraud and money laundering.
“The defendant was well aware of the FTX exchange’s multibillion-dollar shortfall in funds. Nevertheless, he still used client funds for personal purposes, including investments and campaign contributions,” the indictment said.
The legal team defending Sam Bankman-Fried has asked a federal judge to allow the former FTX CEO to have access to antidepressants while he is in prison. Bankman-Fried has been diagnosed with depressive disorder and attention deficit hyperactivity disorder, according to the Cointelegraph, citing a letter from Dr. George Lerner.
Attorneys have requested an adequate supply of medication for the duration of the defendant’s stay in the detention center. They believe the lack of necessary medication could seriously affect Sam Bankman-Fried’s ability to defend himself.
In December 2022, the former FTX CEO was arrested in the Bahamas on suspicion of fraudulent behavior. He was later released on $250 million bail. In July 2023, FTX filed a $1 billion lawsuit against Bankman-Fried and former top executives of the exchange.
The lawsuit was filed in July 2023.