Wednesday, December 14, 2022
The Indictment of Samuel Bankman- Fried is straightforward using generic fraud and conspiracy statutes, as well as some more specific statutes in the charges. (See Indictment here).
Count One - Wire Fraud on Customers (18 USC 1349)
Count Two - Wire Fraud on Customers (18 USC 1343)
Count Three - Conspiracy to Commit Wire Fraud on Lenders (18 USC 1349)
Count Four - Wire Fraud on Lenders (18 USC 1343)
Count Five - Conspiracy to Commit Commodities Fraud (18 USC 371)
Count Six -Conspiracy to Commit Securities Fraud (18 USC 371)
Count Seven - Conspiracy to Commit Money Laundering (18 USC 1956(h))
Count Eight - Conspiracy to Defraud the United States and Violate the Campaign Finance Laws (18 USC 371)
It is Count Eight that may offer some interesting information for the government. The DOJ Press Release states in part:
U.S. Attorney Damian Williams said: “One month ago, FTX collapsed, causing billions of dollars in losses to its customers, lenders, and investors. Now, a federal grand jury in New York has indicted the former founder and chief executive officer of FTX and charged him with crimes related to the phenomenal downfall of that one-time cryptocurrency exchange, including fraud on customers, investors, lenders, and our campaign finance system. As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple.”
The Press Release, of course, also notes that "[t]he allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty."