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Bankman-Fried had achieved a net worth of around $26 billion due to the surge in cryptocurrency values and became a prominent donor, particularly to Democratic campaigns. However, the subsequent decline of FTX in November 2022, ignited by customer withdrawal concerns regarding the blending of FTX and Alameda assets, resulted in a significant loss of his fortune and standing. This most recent indictment from the U.S. Attorney’s Office in Manhattan contends that Bankman-Fried orchestrated for other FTX executives to contribute funds, bypassing donation limits, all as a strategy for crypto-centric regulations.
According to the indictment, Bankman-Fried utilized his clout to advocate for legislation and regulation beneficial to FTX’s ambitions. Initially, he faced charges for violating U.S. campaign finance laws. However, these charges were retracted in July when the Bahamas, where FTX is headquartered and where Bankman-Fried was apprehended in December, clarified they had no plans to extradite him to the U.S. based on those allegations.
Judge Lewis Kaplan of the U.S. District in Manhattan has since had Bankman-Fried imprisoned as a preliminary measure before his trial on October 2. This decision came after Kaplan found convincing reasons to believe Bankman-Fried might have attempted to influence witnesses on two occasions. Prior to this, Bankman-Fried was mostly restricted to his family’s home in Palo Alto, California, following his extradition and a set bond of $250 million.
This article was originally published on Quiver Quantitative
