Read the Criminal Indictment Against Sam Bankman-Fried

Federal prosecutors in Manhattan unsealed an eight rely indictment towards Sam Bankman-Fried on Tuesday morning, a day after the crypto entrepreneur was arrested within the Bahamas.

The indictment charged Mr. Bankman-Fried with securities fraud, wire fraud and a number of other conspiracy counts involving cash laundering and marketing campaign finance violations. The 13-page submitting mentioned Mr. Bankman-Fried and others engaged in a scheme that started again in 2019 to defraud clients of the FTX crypto alternate and lenders to Alameda Analysis, a crypto buying and selling platform that was carefully tied to FTX.

Federal prosecutors in Manhattan filed fees solely towards Mr. Bankman-Fried. However the indictment suggests a few of his associates at FTX may additionally face fees sooner or later. It’s additionally potential that some could also be cooperating with the investigation.

Mark Cohen, a lawyer for Mr. Bankman-Fried, mentioned his consumer was “reviewing the costs together with his authorized workforce and contemplating all of his authorized choices.”

The prison indictment is much less detailed than a civil securities fraud criticism filed on Tuesday morning by the Securities and Alternate Fee. The S.E.C. criticism centered on misrepresentations that Mr. Bankman-Fried had made to large traders who invested practically $2 billion within the alternate. Securities regulators additionally mentioned that buyer cash deposited with FTX for buying and selling crypto had lengthy been commingled with cash at Alameda and misused by Mr. Bankman-Fried.

The indictment additionally fees that Mr. Bankman-Fried lied to his traders and clients. Nevertheless it features a new allegation that he lied to lenders — typically different crypto buying and selling corporations — that supplied financing to Alameda. Federal prosecutors within the indictment mentioned Mr. Bankman-Fried dedicated wire fraud by acquiring these large loans and “offering false and deceptive data” to the lenders about Alameda’s monetary situation.

Prosecutors additionally cost that Mr. Bankman-Fried conspired with others to violate federal marketing campaign finance legal guidelines by making contributions within the names of different folks in violation of reporting necessities.

Mr. Bankman-Fried and FTX have been main political donors within the final federal election cycle.

Right here is the indictment: