The U.S. Department of Justice (DOJ) seeks to seize $16 million in crypto from a Binance account to investigate bribery allegations involving FTX founder Sam Bankman-Fried (SBF).
The DOJ claims that in 2021, SBF authorized a $40 million payment from Alameda Research to bribe Chinese officials to unfreeze $1 billion in assets.
The funds were funneled through private wallets before reaching the Binance account, flagged for unusual trading activity. Former Alameda CEO Caroline Ellison testified the total bribe exceeded $100 million. SBF, convicted of fraud, is now serving a 25-year prison sentence.
The bribery allegations against Bankman-Fried, originally part of his indictment, accused him of conspiring to violate the Foreign Corrupt Practices Act. This charge was later separated from the main trial that led to his conviction.
The DOJ’s latest filing is part of a broader mission to recover over $3 billion in assets linked to FTX-related crimes. FTX has recently filed several lawsuits to expedite fund recovery, including claims of $1.8 billion against Binance and Changpeng Zhao, $90 million against Waves founder Aleksandr Ivanov, and over $1 billion against Nawaaz Mohammad Meerun, a.k.a. “Humpy the Whale,” for alleged market manipulation losses.
Additional suits involve Storybook Brawl creators and notable figures like Anthony Scaramucci and Neil Patel. However, Mr. Purple, an advocate for FTX creditors, doubts the full recovery, estimating potential settlements may total under $0.5 billion.
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