Security News > 2023 > March > FTX cryptovillain Sam Bankman-Fried charged with bribing Chinese officials

US authorities have charged FTX co-founder Sam Bankman-Fried with attempting to bribe Chinese officials with $40 million worth of cryptocurrency in exchange for unfreezing trading accounts.

The indictment [PDF] alleges the Chinese government froze over $1 billion worth of Alameda Research digital assets and that after SBF tried to secure access he broke out the checkbook.

According to the indictment, SBF and others needed the assets to fund additional Alameda trading activity, to try to keep the business going as the proverbial wheels were coming off the FTX wagon.

SBF had publicly proclaimed Alameda was nothing more than a "Liquidity provider" to FTX and a "Wholly separate entity," while privately it was given the ability to maintain a negative balance, a multi-billion-dollar line of credit, and could borrow funds without collateral.

According to court documents, SBF is prohibited from using "Any other cellphones, tablets, computers, videogames that permit chat or voice communication, or 'smart' devices with internet access."

SBF is allowed to access a list of fairly boring pre-approved websites to prepare his defense, and a few for personal use.

News URL

https://go.theregister.com/feed/www.theregister.com/2023/03/29/us_charges_ftxs_sam_bankman/