The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize roughly $16 million in cryptocurrency held in a Binance account, believed to be connected to former FTX CEO Sam Bankman-Fried’s alleged bribery activities.
According to court documents, the assets, including Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL) tokens, are suspected to stem from illicit transactions.
Solana Dominates Holdings Amid Market Rally
Solana (SOL) makes up more than half of the seized assets, valued at approximately $8.5 million. Due to a recent crypto market rally, the account’s overall value has surged, doubling to $16 million since the original transfers. The rally was partially fueled by optimism surrounding U.S.-listed spot Bitcoin and Ethereum ETFs.
The investigation traces back to November 2021 when Bankman-Fried allegedly orchestrated a $40 million USDT payment from Alameda Research wallets in a bid to bribe Chinese officials. The bribe was intended to unfreeze $1 billion worth of assets on Chinese exchanges, with the funds subsequently funneled through multiple private wallets before ending up in a Binance deposit account.
DOJ Targets Binance for Suspicious Activity
The DOJ’s suit, aimed at recovering FTX-linked funds, highlights the nature of transactions on the Binance account, with frequent stablecoin and Bitcoin deposits rapidly converted to other assets via OTC trades. This pattern of activity led authorities to associate the assets with the alleged bribery scheme.
Bankman-Fried, already convicted on seven criminal charges, is currently serving a 25-year prison sentence. His legal team is appealing the verdict, arguing that he faced a biased trial. The bribery charges, initially part of his indictment, were set aside in the primary trial, which focused on fraud and conspiracy.
Cyprus Extends Suspension of FTX Europe
On November 5, the Cyprus Securities and Exchange Commission (CySEC) extended FTX Europe’s suspension by an additional six months, preventing the firm from offering services or onboarding new clients until at least May 30, 2025. The extension, CySEC’s fourth since November 2022, still permits FTX Europe to settle transactions and return funds to existing clients.
DOJ Pursues $13.25M in Political Donations
In the U.S., the DOJ seeks to reclaim $13.25 million in political contributions linked to FTX executives. Federal Judge Lewis Kaplan, who is overseeing the case, approved an extension allowing the government until January 15 to negotiate with relevant political action committees.
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