Sam Bankman-Fried faces US seizure of crypto tied to China bribe

The US government is seeking control of a crypto account linked to Sam Bankman-Fried, which was allegedly used to bribe Chinese officials before FTX’s collapse in 2022. 

According to a court filing today in New York, the account is currently valued at $18.5 million. The account’s valuation has increased by nearly $10 million since December 2023 due to the ongoing bull market this year. 

Prosecutors are Ramping Up Efforts to Seize Sam Bankman-Friend’s Frozen Assets

The account reportedly contains Solana, Cardano, Ripple, Internet Computer, and Avalanche. Solana’s value surged nearly 300% in the past year, contributing significantly to the account’s growth. 

Prosecutors claim the account is tied to a $40 million bribe allegedly authorized by Sam Bankman-Fried in 2021. He allegedly initiated the bribe to unfreeze $1 billion held on Chinese crypto exchanges by Alameda Research. 

Although bribery charges were initially filed, they were dropped after the jury’s initial conviction of the former FTX CEO on multiple charges of fraud and money laundering. 

Sam Bankman-Fried is currently serving a 25-year sentence at the Federal Transfer Center in Oklahoma City. He recently filed an appeal on September 13 to overturn his fraud and conspiracy convictions. 

The FTX Saga Continues to Unfold

The fallout from the FTX collapse continues to pan out even after two years. The exchange has been actively pursuing asset recovery to repay customers and creditors.

Most recently, Caroline Ellison, former CEO of Alameda Research, received a two-year sentence for her role in the scandal. Her cooperation in prosecuting Sam Bankman-Fried led to a reduced sentence.

Meanwhile, FTX has launched multiple lawsuits to ramp up fund recovery efforts. The firm recently sued Binance and its former CEO, Changpeng Zhao, seeking $1.8 billion. Alameda Research has also sued Waves founder Aleksandr Ivanov,

Last month, FTX filed a separate lawsuit against KuCoin for $50 million in locked assets. Additional cases target political donations and prominent figures, including Anthony Scaramucci.

To date, the bankrupt exchange has initiated over 20 lawsuits aimed at recovering funds to reimburse creditors.