US prosecutors have requested the seizure of cryptocurrency allegedly connected to bribes paid to Chinese officials by FTX co-founder Sam Bankman-Fried.
Bribery Allegations and Frozen Accounts
According to a suit filed on November 12 in a New York District Court, prosecutors alleged that a Binance account — valued at $8.6 million in December 2023 but subsequently rising to about $18.5 million due to market uptick — was used to launder funds for bribes before FTX's collapse in late 2022. The suit states that Chinese law enforcement froze two of Alameda Research’s accounts in 2021, which held $1 billion in crypto. On November 16, 2021, Bankman-Fried allegedly sent $40 million in Tether (USDT) to a private wallet, and Alameda’s accounts were unfrozen shortly after.
Legal Actions and Testimonies
US authorities seek access to the account set up on November 9, 2023, which was linked to five deposit accounts used to 'conceal or disguise' the alleged bribe paid by Bankman-Fried. Testimony from Caroline Ellison, the former CEO of Alameda Research, stated that the total bribe amounted to around $150 million.
Current State of the Account
Prosecutors assert that the account still holds cryptocurrencies like Solana (SOL), Cardano (ADA), XRP, Internet Computer (IC), and Avalanche (AVAX). Following the collapse of FTX in 2022, Bankman-Fried faced trial and was convicted on seven felony counts, with Judge Lewis Kaplan sentencing him to 25 years in prison on March 28.
This case underscores the seriousness of the allegations and continues to impact the crypto space as authorities and courts address financial misconduct.
