The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize approximately $16 million in cryptocurrency held in a Binance account. This action follows a year-long investigation into funds allegedly linked to bribes authorized by Sam Bankman-Fried, the former CEO of the collapsed crypto exchange FTX.
Key Takeaways
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The DOJ targets $16 million in crypto linked to alleged bribery by Sam Bankman-Fried.
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The assets include various cryptocurrencies, with Solana making up over half of the total value.
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The investigation traces back to a $40 million payment intended to bribe Chinese officials.
The court documents indicate that the funds in question consist of Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL) tokens. Notably, Solana accounts for over half of the holdings, valued at approximately $8.5 million. The total value of the account has surged amid a broader recovery in the cryptocurrency market, doubling to $16 million since the initial transfers.
The investigation's roots can be traced back to November 2021, when Bankman-Fried allegedly orchestrated a $40 million USDT payment from Alameda Research wallets to bribe Chinese officials. The objective was to unfreeze $1 billion worth of cryptocurrency assets held on two exchanges based in China. The funds were reportedly funneled through several private wallets before ultimately landing in a Binance deposit account.
Authorities flagged the Binance account for "suspicious activity," noting nearly daily deposits of stablecoins and Bitcoin that were swiftly converted into other cryptocurrencies via over-the-counter trades. These patterns prompted the DOJ to link the assets to the bribery scheme.
This development adds another layer to the ongoing fallout from FTX’s collapse. Bankman-Fried, already convicted on seven criminal counts, is currently serving a 25-year prison sentence. He has appealed the conviction, with his legal team arguing that the trial was biased against him. The bribery allegations, initially part of his indictment, were separated from the main trial, which focused on fraud and conspiracy charges.
Cyprus Extends Suspension Of FTX’s European Arm
In related news, the Cyprus Securities and Exchange Commission (CySEC) has extended its suspension of FTX’s European division, FTX Europe, for another six months. This decision, announced on November 5, delays the firm’s ability to operate until at least May 30, 2025. The extension prohibits FTX EU from offering services, advertising, or accepting new clients, although it allows the platform to complete transactions and return funds to existing clients.
This marks the fourth suspension extension since CySEC first halted FTX Europe’s operations in November 2022, following FTX’s bankruptcy in the United States. At that time, FTX had operated in the European market for only eight months, offering regulated investment services for multi-asset derivatives.
Meanwhile, in the U.S., the Justice Department is seeking the return of up to $13.25 million in political contributions linked to former FTX executives, as revealed in a recent federal court filing. Judge Lewis Kaplan, who is overseeing the criminal proceedings against former FTX CEO Sam Bankman-Fried and his associates, approved the government’s request for an extension until January 15 to negotiate with various political action committees (PACs).