• Tue. Jun 18th, 2024

Prosecutors Seize $50M From an SBF account in a Farmington State Bank


ByMaria Fairchild

Jan 27, 2023

lProsecutors announced the seizure of just under $50 million from the bank account of ex-CEO of FTX and cryptocurrency trader, Sam Bankman-Fried.

The funds were seized from an account at Farmington State Bank now referred to as Moonstone, where Bankman-Fried is a major shareholder.

Funds Seizure

The seizure of the funds stems from the ongoing investigation into SBF fraud accusations and alleged financial crimes committed by Bankman-Fried and his associates. 

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According to the prosecutors, the investigation has uncovered evidence of money laundering, tax evasion, and other financial misappropriation.

According to reports on this seizure, many claimed this was a very targeted move by SBF, seeing that the bank is a small firm that is unknown. They stated SBF saw it as the best option to move $50M for safekeeping.

One of the perks of this decision was that this firm is located in a rural area where much attention isn’t given.

Prosecutors made their official reports stating that in an attempt to track down $700M worth of funds related to the fraud case between FTX and Alameda Research, this $50M was discovered.

Alameda Research also had ties with this small bank in the rural area, it was reported that Alameda Research purchased over $11M stakes in the bank.

At the time the Farmington bank had just 3 employees who all specialized in agricultural loans to farmers. This bank did not even offer online banking services.

According to reports, the bank’s location was not even covered by Google maps. This shows the anonymous and hidden nature of the bank and why it was deemed a safe place for an investment with SBF as the biggest shareholder.

Investigations of Missing Funds Still Ongoing 

Authorities are still on the mission to track down all missing assets from the FTX exchange prior to SBF filing for bankruptcy. 

SBF likewise pleaded not guilty to eight charges of fraud.

In addition to the funds seized from this bank, the authorities have also seized $100M from Silvergate firm account and also $21M from another firm.

Many in the industry are calling for more regulations of the cryptocurrency market, as it is still largely unregulated, and this latest incident highlights the need for oversight.

However, the seizure of the funds is a significant development in the case and suggests that the prosecutors believe they have a strong case against the businessman.

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