- FTX token, FTT extends the downswing as the court finds Sam Bankman-Fried guilty of another crime.
- Reportedly, the FTX founder has been sponsoring his defense using stolen funds.
- The allegation has been added to the list of offenses he has to account for.
FTX token (FTT) price has extended its bearish streak on the back of new allegations against FTX founder and former CEO Sam Bankman-Fried. While the shamed crypto executive continues to fight charges of fraud, bribery, and even charges of campaign finance violation, new allegations have come in, adding to the list of crimes he is answerable to.
Also Read:Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Possible BTC game plan as volatility shrinks
FTX token price suffers as SBF charges increase
FTX toke has extended its rally south to find itself stuck between the 100-day and 50-day Exponential Moving Averages (EMA) at $1.47 and $1.36, respectively. Recovery efforts appear to have stopped at this level, for the meantime, as the former CEO of the collapsed cryptocurrency exchange faces charges that add to the stockpile of cases he must answer to.
FTT/USDT 1-Day Chart
Based on recent reports, Sam Bankman-Fried has been discovered to be sponsoring his defense team using stolen funds. The news comes as lawyers representing the collapsed exchange claim that SBF was paying up to $10 million for his lawyer using money resulting from misappropriation when he was servicing the exchange.
Further, the lawyers also call him out for issuing up to $10 million to Joe Bankman, his father, further worsening the outlook of his case.
Based on these accusations, the exchange’s legal representatives want SBF to answer for an extended list of crimes, now including stealing funds to pay his lawyers. The accusation continues to paint him as a conman.
SBF uses tainted money to pay attorney fees
In a 2019 publishing where lawyers discussed the concept of stolen funds being used for legal fees, one lawyer is quoted saying:
If I as an attorney learn that my client has retained me with stolen money, I believe I have both an ethical and moral obligation to return that money to its proper owner and then withdraw from representation of that client.
The lawyers were discussing the ethical dilemma around the civil lawyer of Jennifer McDonald, Lee Berlik, was facing. Like SBF, Jennifer was cited for allegedly using stolen money to pay for his services. If proven true, the position of the US Department of Justice (DOJ), as cited in the US Attorneys’ Manual (“USAM”), is that lawyers should not face prosecution under § 1957 “based on the receipt of bona fide legal fees for legitimate representation in a criminal matter.”
However, SBF’s lawyers would only be blameless if it was proven beyond reasonable doubt that they did not have any actual knowledge about the illegal source of the specific funds. Nevertheless, FTX lawyers are already working out how to recover those funds from SBF and other executives from the firm.
While SBF has not commented on this accusation, FXStreet team is monitoring developments and will update you.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.