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The charges include conspiracy to commit wire fraud on FTX customers and lenders, conspiracy to commit securities and commodities fraud, and conspiracy to commit money laundering. Bankman, without permission, used approximately $10 billion of customer funds to support his lavish lifestyle and to cover losses in Alameda Research.He denied all charges, saying on many occasions that he couldn’t recall events and repeatedly denied that he knew FTX funds were being used properly.
The DoJ proved that Bankman-Fried intentionally orchestrated the movement of FTX customer funds into Alameda. These funds were supposedly used for various purposes, including investments, political contributions, and the purchase of costly real estate. This happened prior to both FTX and Alameda filing for bankruptcy, implying that the fund transfer might have contributed to the financial problems and insolvency of these companies.