- The DOJ is seeking to seize $16 million in crypto from a Binance account, reportedly linked to bribes authorized by Sam Bankman-Fried.
- The seized assets, mainly Solana, have doubled in value since their initial transfer, complicating efforts to recover FTX-related funds.
The U.S. Department of Justice (DOJ) has initiated a civil forfeiture case, aiming to seize approximately $16 million in cryptocurrency held in a Binance account. This action follows an extensive year-long investigation, with the funds reportedly linked to alleged bribes authorized by FTX founder Sam Bankman-Fried.
The case adds a new layer of complexity to the ongoing efforts to recover assets tied to FTX's downfall, especially as the value of the seized tokens has doubled since the original transfers.
According to court documents reviewed by Decrypt, the crypto assets involved include tokens such as Solana (SOL), Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), and Cardano (ADA). Over half of the $16 million is held in SOL, which has seen significant gains due to a bullish crypto market in 2024. The surge in value is attributed to renewed investor confidence following the approval of U.S.-listed Bitcoin and Ethereum exchange-traded funds (ETFs).
The DOJ’s investigation traces back to an alleged incident in November 2021, when Bankman-Fried is said to have orchestrated the transfer of 40 million USDT from an Alameda Research wallet as part of a bribe to Chinese officials. The goal was to unfreeze around $1 billion worth of assets held on Chinese exchanges. The funds were moved across multiple private wallets over two years before landing in the Binance deposit wallet currently under scrutiny.
Authorities have raised concerns over suspicious activity linked to the Binance account, which reportedly saw frequent deposits of stablecoins and Bitcoin, often converted to other cryptocurrencies through over-the-counter trades. These transactions were flagged as part of a broader pattern indicative of potential money laundering.
Bankman-Fried, who is currently serving a 25-year prison sentence after being convicted on multiple charges, has appealed his conviction, with his lawyer arguing that he was “presumed guilty before being charged.” The bribery allegations were initially part of his indictment but were separated from the main trial that led to his conviction.
This latest development is part of ongoing efforts by regulators and law enforcement to recover assets tied to FTX’s implosion. As one investigator put it, “The pursuit of these funds is far from over.”
Edited by Harshajit Sarmah
