DOJ Seeks Seizure of $16M in Crypto Linked to FTX from Binance After Year-long Investigation
The investigation traces the roots of the case to November 2021, when Bankman-Fried allegedly orchestrated a $40 million USDT payment from Alameda Research wallets to bribe Chinese officials
The U.S. Department of Justice (DOJ) has initiated a civil forfeiture complaint to seize approximately $16 million in cryptocurrency held in a Binance account.
The move follows a year-long investigation into funds allegedly linked to bribes authorized by Sam Bankman-Fried, the former CEO of the collapsed crypto exchange FTX.
Court documents reveal that the funds, composed of Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL) tokens, are suspected of originating from illicit transactions.
Solana Accounts for Half of Holdings
Notably, Solana accounts for over half the holdings, valued at $8.5 million.
The account’s total value has surged amid a broader crypto market recovery, doubling to $16 million since the initial transfers.
The rally was partly driven by optimism surrounding U.S.-listed spot Bitcoin and Ethereum exchange-traded funds.
The investigation traces the roots of the case to November 2021, when Bankman-Fried allegedly orchestrated a $40 million USDT payment from Alameda Research wallets to bribe Chinese officials.
The goal was to unfreeze $1 billion worth of cryptocurrency assets held on two China-based exchanges.
The funds were reportedly funneled through several private wallets before ending up in a Binance deposit account.
Authorities flagged the Binance account for “suspicious activity,” noting nearly daily deposits of stablecoins and Bitcoin that were swiftly converted into other cryptocurrencies via over-the-counter trades.
These patterns prompted the DOJ to link the assets to the bribery scheme.
This development adds another layer to the ongoing fallout from FTX’s collapse.
Bankman-Fried, already convicted on seven criminal counts, is currently serving a 25-year prison sentence.
He has appealed the conviction, with his legal team arguing that the trial was biased against him.
The bribery allegations, initially part of his indictment, were separated from the main trial, which focused on fraud and conspiracy charges.
