Federal prosecutors have reportedly charged disgraced former FTX head Sam Bankman-Fried with stealing money from clients to make political campaign donations.
Federal prosecutors are accusing Bankman-Fried of making $100 million in political campaign contributions ahead of the 2022 US midterm elections by using client money, according to a new report from Reuters.
As quoted by Reuters, an indictment amended on Monday alleges that the political contributions were made to increase his influence to more effectively lobby Congress and regulators for rules that would help FTX’s business grow.
“[Bankman-Fried] in turn used this influence to lobby Congress and regulatory agencies in support of legislation and regulations that he believed would make it easier for FTX to continue accepting customer deposits and grow.
Federal prosecutors also reportedly accuse Bankman-Fried of conspiring with two FTX executives to conceal the source of funds and to circumvent campaign finance limits.
Bankman-Fried is facing seven charges of bank fraud, securities fraud, commodities fraud and money laundering for an alleged billion-dollar scheme, which included lying to customers and mixing their money deposited on FTX.
He no longer faces a separate charge of conspiracy to violate campaign finance laws. Federal prosecutors said last month they would drop those charges because of diplomatic difficulties with the Bahamas.
Last week, prosecutors said the amended indictment would “clarify that Mr. Bankman-Fried remains charged with carrying out an illegal campaign finance operation as part of the fraud and money laundering originally charged,” according to Reuters.
Bankman-Fried has pleaded not guilty and is scheduled to stand trial on October 2. Last week, a judge revoked his bail and he was taken to prison following accusations from prosecutors that he attempted to tamper with a witness.
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