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Former FTX Boss Charged for a $40 Million Bribe

Former FTX Boss Charged for a $40 Million Bribe

Crypto Exchange Company Ftx Bankrupt

Last year was a very dramatic turn for the crypto trading firm FTX and its founder Sam Bankman-Fried. He had been charged with allegations against him for carelessness of the company’s finances and allegedly stealing from within. This went so far that FTX had to file for bankruptcy and an ongoing investigation is at hand. It seemed like his other company Alameda Research had underlining debts to pay and paid them through different accounts using FTX as an intermediate. Bankman-Fried has denied all of this but questions have been raised and especially regarding his involvement in the transactions totaling up to $22 billion from entities linked to FTX.

The “Innocent” Chinese Government

Recent news that´s come up, Sam Bankman-Fried has now been charged with paying a $40 million bribe to Chinese officials. Bankman-Fried was also the former boss of the company Alameda Research, a crypto trading firm, which he´s now also accused of bribing to ensure and secure regulatory approval for the company´s expansion into China. There have also been other reports talking about his bribery going beyond China and into the United States as well. An investigation by the US and Chinese authorities has led to more charges against him after investigating more into the alleged payment of bribes to Chinese officials. These allegations against Bankman-Fried have been quite concerning since cryptocurrencies have had a growing interest globally and also the rising scrutiny of the industry by regulators all around the world.

Badly Tied to Chinese Cryptocurrency

Recent years haven´t been kind to the cryptocurrency market, with the prices soaring to unprecedented heights in 2021 before crashing quite low at the beginning of 2022, it´s been a volatile market for sure. The increasing involvement from governments and regulators in the cryptocurrency industry hasn´t helped in any way. And with the allegations against Bankman-Fried the government’s involvement has now contributed to the fact that they´ve been taking a closer look at the use of cryptocurrencies. That is why regulations aimed specifically towards their illegal usages like money laundering and terrorism financing. Also to mention all of the crackdowns on cryptocurrencies in China have sent shockwaves through the industry and are a major factor in why some popular crypto have had a sharp drop in prices.

Bad Move From FTX Crypto Exchange

Sam Bankman-Fried´s charges are raising a ton of questions regarding the future of FTX which has been a top cryptocurrency trading platform with a value of over $18 billion. It is very uncertain how the industry will look like, and especially the impact on FTX, after the incidents. But it highlights the fact for more transparency and accountability in the growing industry of the crypto-world. The allegations do serve as a gentle reminder that this world is not safe from scrutiny and the global impact of cryptocurrencies on the financial system.