Chicago Criminal Lawyer Blog
Two FTX associates have pleaded guilty to charges including wire fraud, commodities fraud, and securities fraud amid the crypto collapse that temporarily destabilized the U.S. economy. Amid the allegations leveled at the company are accusations that they kept no discernable ledger for transactions, did most of their bookkeeping with QuickBooks, and cut themselves loans with their own names as both borrower and recipient.
The largest player, Sam Bankman-Fried, was still in the Bahamas as he was supposed to be testifying before Congress. He was flown back to the U.S. and is currently in FBI custody. A deal was reached with the two associates in exchange for testimony against Bankman-Fried. Bankman-Fried appears poised to be the fall guy for whom the FBI has been waiting. Collectively, the two associates faced 110 years in federal prison. However, their cooperation with law enforcement could help them secure much better deals moving forward.
Ultimately, the federal prosecutors want Sam Bankman-Fried. Bankman-Fried recently disbursed $100 million in FTX assets to Bahamian investors even as the crypto-exchange assets were frozen per the bankruptcy court. This amounts to bankruptcy fraud and is yet another charge that will be added to Bankman-Fried’s growing list of charges.
