Sam Bankman-Fried, the former crypto executive and founder of FTX exchange, has been charged with a new bribery accusation. The charges were filed by the US Securities and Exchange Commission (SEC) on September 21, 2021, alleging that Bankman-Fried offered a bribe to a senior government official in order to secure a license for his company.
The SEC alleges that Bankman-Fried offered a $5.2 million bribe to an unnamed senior official in an Asian country in order to obtain a license for FTX. The bribe was allegedly offered through a middleman, who was also not named in the complaint. The SEC claims that Bankman-Fried knew that the payment was illegal and that it would violate the Foreign Corrupt Practices Act (FCPA).
The FCPA is a US law that prohibits US companies from bribing foreign officials in order to obtain business or gain an unfair advantage. The law applies to all US companies, regardless of where they operate, and carries severe penalties for violations.
Bankman-Fried has denied the allegations and has vowed to fight the charges. In a statement released on Twitter, he said, “I dispute the allegations in the strongest possible terms and will vigorously defend myself against them.”
This is not the first time that Bankman-Fried has been accused of wrongdoing. In August 2021, he was named in a lawsuit filed by the Commodity Futures Trading Commission (CFTC) alleging that he had manipulated the price of Bitcoin futures contracts on the BitMEX exchange. Bankman-Fried was not named as a defendant in the lawsuit, but the CFTC alleged that he had played a key role in the alleged manipulation.
Bankman-Fried has been a prominent figure in the crypto industry in recent years, having founded FTX in 2019. The exchange has quickly become one of the largest in the world, with a daily trading volume of over $10 billion. Bankman-Fried has also been a vocal advocate for cryptocurrency and blockchain technology, and has been involved in several high-profile projects in the space.
The new bribery accusation is likely to have serious consequences for Bankman-Fried and his company. If he is found guilty, he could face significant fines and even jail time. The charges could also damage his reputation and make it more difficult for him to do business in the future.
The case is a reminder of the risks associated with doing business in emerging markets, where corruption and bribery are often rampant. US companies must be vigilant in their efforts to comply with the FCPA and other anti-corruption laws, and must take steps to ensure that their employees and partners are aware of the risks and consequences of non-compliance.
In conclusion, the new bribery accusation against Sam Bankman-Fried is a serious development that could have significant consequences for him and his company. The case highlights the importance of compliance with anti-corruption laws, and serves as a reminder of the risks associated with doing business in emerging markets. It remains to be seen how the case will play out, but it is clear that the allegations are a major setback for one of the most prominent figures in the crypto industry.
