The U.S. Department of Justice (DOJ) recently filed a civil forfeiture complaint to seize approximately $16 million in cryptocurrency held in a Binance account. This action follows a year-long investigation into funds allegedly tied to bribes authorized by Sam Bankman-Fried, the former CEO of FTX.
Crypto Assets Under Scrutiny
Court documents reveal that the seized assets include tokens such as Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL). Each of these tokens may have ties to illicit transactions, according to DOJ findings.
Solana Dominates Asset Value
Interestingly, Solana makes up over half of the holdings, valued at $8.5 million. Recently, the account’s value surged to $16 million, reflecting a broader market recovery in crypto. This rally likely stems from optimism around U.S.-listed spot Bitcoin and Ethereum exchange-traded funds.
Tracing the DOJ’s Investigation Origins
The investigation dates back to November 2021, when Bankman-Fried allegedly directed a $40 million USDT transfer from Alameda Research wallets to bribe Chinese officials. He reportedly intended to unfreeze $1 billion in crypto assets held on two Chinese exchanges. Investigators found that the funds moved through multiple private wallets before landing in a Binance deposit account.
DOJ Targets FTX-Linked Assets on Binance
The DOJ’s lawsuit seeks to reclaim about $160 million in assets connected to FTX. These assets include $85 million in Solana, along with ICP, AVAX, XRP, and ADA. This action underlines the DOJ’s ongoing efforts to recover funds linked to the FTX scandal.
Authorities flagged the Binance account for “suspicious activity” due to frequent stablecoin and Bitcoin deposits, which were quickly converted into other cryptocurrencies through over-the-counter trades. This pattern led the DOJ to link these assets to the alleged bribery scheme.
The Ongoing Fallout from FTX’s Collapse
This seizure adds to the continuing fallout from FTX’s collapse. Bankman-Fried, already convicted on seven criminal counts, is currently serving a 25-year prison sentence. He appealed the conviction, asserting that the trial was biased. Importantly, the bribery allegations were separated from the main trial, which focused on fraud and conspiracy charges.
Cyprus Extends Suspension of FTX Europe
Separately, the Cyprus Securities and Exchange Commission (CySEC) recently extended its suspension of FTX Europe’s operations for another six months. Announced on November 5, this decision blocks FTX EU from operating, advertising, or accepting new clients until at least May 30, 2025. However, CySEC allows the platform to complete existing transactions and return funds to current clients. This extension marks the fourth since CySEC initially halted FTX Europe’s operations in November 2022, after FTX’s bankruptcy in the United States.
DOJ Seeks Political Contributions from FTX Executives
Meanwhile, the DOJ is actively working to reclaim approximately $13.25 million in political donations linked to former FTX executives. In a recent court filing, Judge Lewis Kaplan, who oversees the criminal cases involving Bankman-Fried, approved an extension until January 15 for negotiations with various political action committees (PACs) that received these funds.
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