The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize cryptocurrency worth about $16 million held in a Binance account.
This action is the result of a years-long investigation into suspected illegal activities tied to alleged bribery schemes involving FTX founder Sam Bankman-Fried, also known as SBF.
The Alleged Bribery Scheme
The root of the DOJ’s case goes back to November 2021, when Bankman-Fried allegedly authorized a $40 million payment in Tether (USDT) through wallets belonging to FTX’s sister company, Alameda Research.
In documents it filed on November 12, the DOJ claimed that SBF intended the payments as a bribe to unnamed Chinese officials to facilitate the release of $1 billion worth of crypto belonging to Alameda, which had been frozen on two China-based digital asset exchanges.
Further, the documents allege that the money was funneled through several private wallets before landing in the Binance address now targeted by the Justice Department. The wallet was flagged for suspicious activity after authorities noted nearly daily deposits of Bitcoin (BTC) and stablecoins, which were then quickly converted into other cryptocurrencies through over-the-counter (OTC) trades.
Upon receipt of the bribe, U.S. authorities claim the Chinese officials unfroze the Alameda funds, with SBF apparently greenlighting additional payments in the tens of millions of dollars.
When testifying against SBF in 2023, Alameda’s former chief executive, Caroline Ellison, stated that the alleged bribe amounted to more than $100 million.
Bankman-Fried is currently serving a 25-year sentence after being found guilty by a New York grand jury on multiple counts of fraud and conspiracy charges related to the collapse of FTX.
Assets Doubled in Value Following Recent Market Recovery
Some of the deposits into the account involved huge sums, including nearly $78 million worth of crypto received on December 4, 2023. Subsequently, more than $59 million was withdrawn, leaving about $8.6 million in various cryptocurrencies, including Solana (SOL), Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), and Cardano (ADA).
Following the recent jump in the prices of various cryptocurrencies, including several held in the account in question, the overall value of the stash has jumped to more than $16 million, with SOL alone reportedly accounting for more than half of that amount, at about $8.5 million.
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