SBF Perpetrated ‘One of the Biggest Financial Frauds in American History,’ Says US Attorney

“We are not done” with charges, US Attorney Damian Williams said

article-image

US Attorney of the Southern District of New York Damian Williams | Ron Adar/Shutterstock.com modified by Blockworks

share

United States agencies teamed up to deliver joint statements regarding Sam Bankman-Fried’s indictment Tuesday. 

The US Attorney of the Southern District of New York hosted a press conference Tuesday alongside the Securities and Exchange Commission, the Federal Bureau of Investigations and the Commodities Futures Trading Commission. 

US Attorney Damian Williams called Bankman-Fried’s crimes some of the worst the country has ever seen. 

“It’s so hard to compare these things, but by anyone’s light this is one of the biggest financial frauds in American history,” Williams said. 

In addition to the alleged financial crimes associated with the exchange and sister company Alameda Research, Bankman-Fried is also being accused of making illegal campaign donations to candidates.

“All of this dirty money was used in service of Bankman-Fried’s desire to buy bipartisan influence and impact the direction of public policy in Washington,” Williams said.

This is not the first time the disgraced founder’s political donations have been questioned. Nonprofit Citizens for Ethics filed a complaint with the Federal Election Commission earlier this month accusing Bankman-Fried of donating nearly $40 million in dark money to politicians.

The complaint noted that “Bankman-Fried admitted he transferred funds “to Republicans” to influence “primaries” because that’s “where the good candidates” are elevated “against bad candidates.”

The criminal charges against Bankman-Fried, which include wire fraud and money laundering, were authorized last week on Dec. 7 and Bankman-Fried was indicted in the Southern District of New York on Dec. 9. 

He was taken into custody in the Bahamas on Monday and is currently being held there as extradition proceedings are ongoing, Williams added. 

When asked if there will be additional indictments against other individuals involved with FTX, Williams said more charges should be expected. 

“I can only say this clearly, we are not done,” Williams said. He declined to comment on individuals who were cooperating with the investigation. 

The press conference came the same day as the House Financial Services Committee gathered to hear testimony from new FTX CEO John Ray. After four hours of questioning Tuesday, the committee moved to resume the hearing in the new year. 


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability