DOJ Seeks to Seize $16M in Crypto Linked to SBF Bribery Case on Binance

Federal prosecutors aim to confiscate cryptocurrency assets tied to FTX's collapse after extensive investigation

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  • The U.S. Department of Justice is seeking to seize $16 million in cryptocurrency from a Binance account linked to Sam Bankman-Fried’s alleged bribery scheme.
  • The crypto assets, including SOL, ICP, AVAX, XRP, and ADA, have doubled in value since their initial transfer.
  • The funds are connected to a 40 million USDT bribe allegedly authorized by Bankman-Fried to unfreeze $1 billion in Chinese exchanges.
  • Over $8.5 million of the seized assets are in Solana (SOL) tokens.
  • The case adds complexity to asset recovery efforts due to the significant appreciation in value of the seized cryptocurrencies.

DOJ Files Civil Forfeiture Complaint for Crypto Assets

The U.S. Department of Justice has initiated legal action to seize approximately $16 million worth of cryptocurrency held in a Binance account.

The assets are allegedly connected to bribes authorized by former FTX CEO Sam Bankman-Fried, according to a court filing.

Diverse Cryptocurrency Portfolio Under Scrutiny

The Binance account, established in November 2023, contains multiple cryptocurrencies including Internet Computer (ICP), Avalanche (AVAX), Ripple (XRP), Cardano (ADA), and Solana (SOL).

Solana represents the largest portion of the seized assets, valued at approximately $8.5 million.

The total value of these assets has increased substantially, doubling since their initial transfer due to the recent cryptocurrency market recovery.

Origins of the Alleged Bribery Scheme

The investigation traces back to November 2021, when Bankman-Fried allegedly directed a transfer of 40 million USDT from an Alameda Research wallet.

The purpose of the transfer was to facilitate a bribe payment to Chinese officials to unfreeze approximately $1 billion worth of cryptocurrency held on two China-based exchanges.

Suspicious Transaction Patterns

Law enforcement officials identified suspicious activities in the account, including:

  • Daily stablecoin and Bitcoin deposits
  • Rapid conversion of deposits to other cryptocurrencies
  • Frequent over-the-counter trading activity

Legal Context and Current Status

This case represents another chapter in the ongoing FTX saga, following Bankman-Fried’s conviction on seven criminal counts.

The former crypto executive is currently serving a 25-year prison sentence and has filed an appeal, with his defense claiming he was "presumed guilty—before he was even charged."

The bribery allegations were originally part of a broader indictment, charging Bankman-Fried with conspiracy to violate the Foreign Corrupt Practices Act.

These charges were later separated from the main trial that resulted in his conviction.

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