This guy gets not break.. Sam Bankman-Fried more charges
On Thursday, four new charges were brought against Sam Bankman-Fried, who is accused of creating a new company called North Dimension to take customer deposits after FTX.US was denied a California bank account for not being a licensed money services business.
According to prosecutors, Bankman-Fried made false statements on a due diligence questionnaire and directed FTX customers to make deposits to North Dimension in an effort to hide the fact that the funds were being sent to an account controlled by Alameda, FTX's sister hedge fund.
The allegations are part of new charges against Bankman-Fried for conspiracy to commit bank fraud and conspiracy to operate an unlicensed money-transmitting business. North Dimension, which was founded in August 2020, was previously revealed in other complaints against Bankman-Fried.
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The company was billed as an online electronics retailer, but prosecutors say it had no employees or business operations other than its bank account.
FTX filed for bankruptcy in November following a run on the firm after CoinDesk reported that the crypto exchange's funds were conflated with Alameda's. Bankman-Fried has admitted to "misaccounting" $8 billion after double-counting customer funds that were wired to Alameda.
The SEC has described Alameda as Bankman-Fried's "personal piggy bank" and alleged that executives had spent some of the money on luxuries.
While FTX's American company was registered as a money services business in 2020, prosecutors say there was never an attempt to get a license for FTX. The name of the bank that denied FTX a California account was not revealed in the court filing.