Feds see more suspects in Sam Bankman-Fried FTX case: ‘Very ongoing’

Alleged accomplices of accused crypto-fraudster Sam Bankman-Fried announced on Tuesday that they will soon be arrested – and called for cooperation before it’s too late.

Manhattan U.S. Attorney Damian Williams said his “comprehensive investigation” into the more than $8 billion collapse of Bankman-Fried’s cryptocurrency exchange FTX and hedge fund Alameda Research “is very much ongoing and it’s moving very quickly.”

“But I want to make one more thing clear: While this is our first public announcement, it won’t be our last,” he said at an afternoon news conference in Lower Manhattan, set to Bankman-Fried. to officially disclose the charges.

Williams said the Bankman-Fried eight-count indictment referred to unknown accomplices and that various unidentified individuals cooperated with the federal investigation into “one of the largest financial frauds in American history.”

Sam Bankman-Fried faces multiple fraud charges.

“To anyone who has been involved in wrongdoing at FTX or Alameda Research and has not yet come forward, I strongly encourage you to meet with us before you come forward,” he said.

Williams said Bankman-Fried’s alleged fraud involved defrauding FTX clients and investors, Alameda creditors, and violating campaign finance laws by making tens of millions of dollars in political donations to “Democrats and Republicans.” ‘liq covers the area of ​​”four wrong actions”.

“These contributions were disguised as coming from wealthy partners, when in fact the contributions were funded by Alameda Research with stolen client money,” he said.

Damien Williams
Damian Williams, US Attorney for the Southern District of New York, announced the indictment against Sam Bankman-Fried.
Alec Tabak
Damien Williams
Williams cautioned that anyone who has previously dealt with FTX should come forward as soon as possible.
Alec Tabak

“And all of that dirty money was used to serve Bankman-Fried’s desire to buy bipartisan influence and influence the direction of public policy in Washington.”

During a Q&A with reporters, Williams was asked how the Bahamas-loving, curly-haired 30-year-old Bankman-Fried doesn’t fit the profile of a typical white-collar criminal.

“Well, you can cheat in the sun in shorts and T-shirts. That’s possible,” Williams says.

Williams also acknowledged that it was “too soon” for the feds to pay off Bankman-Fried just weeks after FTX and Alameda collapsed.

“But I stressed that we’re not done yet,” he added.

Michael Driscoll, the FBI’s assistant director in charge of New York, said authorities are “determined to help the victims of this case receive justice, and we will continue to make every effort to recover as much of their money as possible.” we will deliver”.

“Fraud is fraud. The complexity of the investment scheme is not important. “It doesn’t matter how much money there is,” he said. “If you mislead and cheat to get something that doesn’t belong to you, we will hold you accountable.”

Gurbir Grewal, executive director of the Securities and Exchange Commission, said Bankman-Fried “falsely collected more than $1.8 billion from shareholders” while operating “behind the law.”

The FTX investigation is ongoing and moving quickly.
Getty Images/Stephanie Keith

But Grewal said, “the whole house of cards started to come crashing down in May 2022 as crypto prices plummeted.”

“This collapse has had far-reaching consequences for FTX’s clients, its investors and its colleagues,” he said. “But the immediate takeaway from today’s announcement is that non-compliant trading platforms pose a serious risk to both investors and clients.

“Among other things, they do not provide them with the same level of disclosure and protection against fraud and conflicts of interest. Traditional, US-registered stock exchanges provide just that. Therefore, platforms that do not meet the requirements must meet the requirements,” he added.


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