DOJ Seeks to Seize $16 Million in Crypto from Binance Account Linked to Sam Bankman-Fried Bribery Scheme

The U.S. Department of Justice has filed a civil forfeiture complaint. They want to seize about $16 million in cryptocurrency held in a Binance account. This follows a year of investigations.

According to court documents, the tokens in question are linked to bribes authorized by Sam Bankman-Fried. This situation could complicate recovery efforts since the value of these assets has more than doubled since they were first transferred.

The Binance account was created in November 2023. It reportedly held various tokens, including Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL). Notably, over half of the tokens were in Solana, valued at around $8.5 million.

Estimates now suggest that the total value has surged to $16 million. This increase is due to a remarkable recovery in the cryptocurrency market this year, driven by positive sentiment around U.S.-listed Spot Bitcoin and Ethereum exchange-traded funds.

This case stems from a November 2021 incident. Bankman-Fried allegedly directed the transfer of 40 million USDT from an Alameda Research wallet to pay off Chinese officials. The goal was to unfreeze approximately $1 billion worth of cryptocurrency held on two exchanges in China.

Authorities traced the funds through several private wallets. Transactions occurred between December 2021 and December 2023, ultimately landing in a Binance deposit wallet.

Officials have noted suspicious transaction patterns in the account. They observed "nearly daily" deposits of stablecoins and Bitcoin that were "quickly converted" into other cryptocurrencies through over-the-counter trades.

This development is part of ongoing efforts to recover assets linked to FTX-related crimes. This comes even after Bankman-Fried's conviction on seven criminal counts. He is currently serving a 25-year prison sentence and has appealed his conviction. His lawyer claims that he was "presumed guilty—before he was even charged."

Originally, the bribery allegations were part of Bankman-Fried's indictment. They were among thirteen charges against him, including conspiracy to violate the Foreign Corrupt Practices Act. This particular charge was later separated from the main trial that led to his conviction.