Sam Bankman in trouble again, read why

The world of cryptocurrencies and their exchanges continues to be embroiled in scandals. This time, the founder of the failed FTX, Sam Bankman-Fried, is facing new charges by U.S. prosecutors for allocating USD 40 million in improper payments to Chinese officials.

The CEO of what was once the world’s second-largest cryptocurrency exchange was already facing charges for the billions in losses he caused his customers. Now, he faces a new indictment for conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. According to the court filing, Bankman-Fried directed the transfer of USD 40 million in cryptocurrencies to benefit Chinese government officials, and federal prosecutors in Manhattan are asking U.S. District Judge Lewis Kaplan to set up a hearing to prosecute the CEO on the 13 new charges.

The former billionaire, just 31, had already pleaded not guilty to eight charges in the FTX bankruptcy. Prosecutors allege that Bankman-Fried stole billions of dollars in customer funds to cover losses at Alameda Research, his cryptocurrency-focused hedge fund. Scandals in the cryptocurrency world continue to grow, and the latest indictment against Bankman-Fried is just one more sign of the need for stricter regulations and transparency in the sector.

The security of investors and users of these exchanges must be a priority, and it is hoped that cases like this do not go unpunished, because the financial security of millions of investors is at risk.