DOJ targets $16M in Binance crypto tied to SBF case
The US Department of Justice (DOJ) has filed a civil forfeiture lawsuit to seize approximately $16 million in cryptocurrency held in a Binance account, according to court filings in the US District Court for the Southern District of New York.
The lawsuit follows a year-long investigation into Sam Bankman-Fried (SBF) and centers on alleged bribery and money laundering activities.
According to the DOJ, in 2021, SBF directed the transfer of $40 million in USDT (CRYPTO:USDT) from an Alameda Research wallet to a private wallet to bribe Chinese officials and unfreeze $1 billion in crypto assets held by Alameda on two Chinese exchanges.
Authorities state that these funds were subsequently laundered through various exchanges and wallets between 2021 and 2023.
Investigators identified suspicious transactions, tracing some of the laundered funds to a Binance account created in November 2023.
This account reportedly held altcoins such as Solana (CRYPTO:SOL), Cardano (CRYPTO:ADA), Ripple (CRYPTO:XRP), Avalanche (CRYPTO:AVAX), and Internet Computer Protocol (CRYPTO:ICP), with SOL comprising the largest share.
The DOJ is pursuing forfeiture on the grounds that these assets are connected to money laundering activities.
While the Grand Jury indicted SBF for conspiracy to violate anti-bribery provisions, these charges were separated from the main trial.
This case is part of a broader legal push following FTX's (CRYPTO:FTT) collapse two years ago.
SBF, now serving a 25-year prison sentence, and other convicted former executives have left creditors waiting for the recovery of their funds.
The FTX estate has been active, filing over 30 lawsuits in recent weeks to reclaim mismanaged assets.
Targets include individuals, startups, non-profits, and political action committees that received investments or donations from SBF and FTX executives.
Notably, FTX has also sued Binance and former CEO Changpeng Zhao for $1.8 billion related to an alleged fraudulent share repurchase involving SBF.
Zhao’s tweet about selling $529 million in FTT allegedly triggered withdrawals that led to FTX's downfall.
Amid ongoing legal battles, independent studio A24, in collaboration with Apple, is set to produce a film about SBF based on Michael Lewis’s book Going Infinite: The Rise and Fall of a New Tycoon.
Lewis, known for The Big Short, had been chronicling SBF’s journey before FTX’s collapse.
Production details and casting for the film have yet to be announced.
At the time of reporting, the FTX Token (FTT) price was $1.83.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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