FTX co-founder Bankman-Fried, once a golden boy in the currency circle, is now facing a lawsuit from the US federal government.

(AFP file photo)

[Compile Wei Guojin/Taipei Report] U.S. federal prosecutors charged in the indictment on the 28th that Bankman Fried, the co-founder and CEO of FTX, the world’s second largest cryptocurrency exchange before its bankruptcy in mid-November last year ( Sam Bankman-Fried) paid at least US$40 million (TWD 1.214 billion) to bribe at least one Chinese government official.

CNBC reported that the U.S. federal government has accused several accounts of Alameda Research, a hedge fund owned by Bankman-Fried, of becoming the target of a freezing order by the Chinese police around November 2021.

The indictment says Bankman-Fried and others "directed and transferred" at least $40 million (TWD 1.214 billion) in cryptocurrency "for the benefit of one or more Chinese government officials in an attempt to influence and entice them." Unfreeze some of these accounts.

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U.S. prosecutors said that Bankman-Fried and his accomplices had considered and tried some methods of unfreezing the account, including providing cryptocurrency worth about $1 billion, but in the end the relevant efforts failed, so Bankman-Fried Agreeing to and directing tens of millions of dollars in bribes to unban related accounts.

The report said Bankman-Fried's hedge fund continued to fund Alameda's loss-making deals using unfrozen assets in what the government said was another year of defrauding clients and investors.

FTX and Alameda went bankrupt in November 2022 after worries about their balance sheets turned into a veritable run.