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On Tuesday, U.S. officials initiated a forfeiture complaint aimed at recovering cryptocurrency assets linked to Sam Bankman-Fried, the disgraced founder of FTX. This action centers on an alleged bribe of $40 million paid to Chinese officials, which was intended to secure the release of funds tied to Alameda Research, a sister company of FTX.
U.S. Seeks to Seize Crypto Linked to Bribery Scheme
The recently filed lawsuit uncovers that in 2021, Bankman-Fried transferred $40 million in Tether to officials in China as part of an effort to unfreeze two accounts owned by Alameda Research. The investigation indicates that the U.S. government is seeking to confiscate a Binance account holding $18.5 million that is connected to these alleged bribery transactions.
Following the transfer of the $40 million, Alameda Research’s accounts were promptly unlocked. The Binance account relevant to these bribes reportedly contained $8.6 million in 2023, but its value skyrocketed to $18.5 million within just a year.
Legal Challenges for Bankman-Fried and Associates
Sam Bankman-Fried is currently serving a 25-year prison sentence for his role in orchestrating a major cryptocurrency fraud scheme. In addition to his sentence, he has been ordered to pay a staggering $11 billion in restitution.
Several of his former associates have provided crucial testimony against him during his landmark trial in November 2023. Key witnesses included Caroline Ellison, the former CEO of Alameda Research, Nishad Singh, FTX’s director of engineering, and Gary Wang, the chief technology officer of FTX. Ellison has already begun serving her two-year prison term and faces the same restitution order of $11 billion. In contrast, Singh avoided incarceration but is still liable for the restitution and will undergo three years of supervised release. Wang’s sentencing is scheduled for November 20 at the Manhattan federal courthouse.
Hollywood Takes Notice
Amid these legal developments, news has emerged that Lena Dunham, the creator of “Girls,” is penning a screenplay about the infamous crypto figure for Apple Studios and A24. This film is based on Michael Lewis’ October 2023 book, “Going Infinite: The Rise and Fall of a New Tycoon.” Notably, Lewis faced backlash from the cryptocurrency community for what some perceived as a sympathetic portrayal of Bankman-Fried. His lawyers even attempted to leverage excerpts from Lewis’s writing in their defense strategy, indicating the complexities of the narrative surrounding Bankman-Fried.
While the production of the film progresses, it remains uncertain how Bankman-Fried will ultimately be depicted in this cinematic retelling of his rise and fall within the crypto world.
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