Blockchain Sleuth ZachXBT Exposes Sam Bankman-Fried’s $40M China Bribe Scandal

Crypto's fallen golden boy strikes again—this time with a paper trail.

ZachXBT, the blockchain investigator who's made a career out of exposing crypto's dirty laundry, just dropped another bombshell: Sam Bankman-Fried allegedly funneled $40 million to Chinese officials in a bid to 'grease the wheels' for his empire. Because nothing says 'decentralized ethos' like old-school bribery.

The $40M paper trail

On-chain data doesn't lie—unless it's laundered through a maze of shell companies. ZachXBT's report traces the funds from Alameda-linked wallets to shadowy middlemen, with timestamps coinciding with critical regulatory negotiations. A coincidence? The blockchain begs to differ.

When 'business development' meets black budgets

The crypto industry loves to preach transparency—until it's time to pay for 'licensing fees.' This $40M revelation exposes the ugly underbelly of crypto's growth-at-all-costs mentality. Regulatory arbitrage? Try outright checkbook diplomacy.

Another day, another crypto scandal. But hey—at least the blockchain is immutable, even when the ethics aren't.

TLDR

• ZachXBT has uncovered a hidden $40 million transfer linked to Sam Bankman-Fried’s alleged bribery of Chinese officials.
• The transfer is part of the ongoing investigation into Bankman-Fried’s involvement in the collapse of the FTX crypto exchange.
• Blockchain investigator DefiSquared traced the suspicious funds, revealing a connection to Alameda Research’s frozen accounts in China.
• Sam Bankman-Fried’s legal team is appealing his conviction, claiming judicial bias and unfair treatment during the trial.
• The $40 million payment was allegedly used to unfreeze crypto assets worth over $1 billion on Chinese exchanges.

ZachXBT has raised questions about a $40 million transfer that Sam Bankman-Fried allegedly used to bribe Chinese authorities. This transfer, which Bankman-Fried reportedly hid from the public, is part of ongoing investigations surrounding the former FTX CEO. The issue has now gained renewed attention after Bankman-Fried’s trial and conviction for fraud and conspiracy related to the FTX collapse.

Sam Bankman-Fried Faces New Allegations of Bribery

Sam Bankman-Fried’s defense team is in the process of appealing his conviction on seven criminal charges. His attorneys argue that the trial was unfair, citing judicial bias from Judge Lewis Kaplan. They claim that the trial’s atmosphere prejudiced the jury, making it impossible for Bankman-Fried to receive a fair hearing.

ZachXBT, a blockchain investigator, responded to Bankman-Fried’s appeal comments on Twitter. He pointed out the $40 million transfer allegedly used to bribe Chinese authorities, questioning why it had not been disclosed earlier. This payment was linked to efforts to unfreeze accounts belonging to Alameda Research on Chinese exchanges, which contained over $1 billion in crypto.

Bankman-Fried’s defense team argued that the bribe was part of a chaotic series of decisions and not an intentional act of corruption. During the trial, prosecutors claimed that Bankman-Fried approved the bribe to regain access to critical funds. The payment, allegedly made in November 2021, was a central part of the prosecution’s argument.

Investigators Trace the $40 Million Bribe

Blockchain sleuth DefiSquared traced suspicious transfers involving FTX-linked wallets, leading to the $40 million payment. According to DefiSquared, a wallet tagged to Multichain exploiter address 0x622e5 moved over 1,000 WBTC. These funds were converted to USDT through the crypto exchange Gate.io before being laundered across multiple addresses.

ZachXBT shared DefiSquared’s findings, which pointed to the $40 million transaction. The transfer was allegedly made to Chinese officials to unfreeze Alameda’s funds. DefiSquared’s investigation followed the money trail from one of FTX’s wallets to a deposit address that later received the funds.

[SBF says:]

I don't quite agree with every point—but, yeah, this is basically what happened.

I'm not saying FTX's solvency or the Debtors' mismanagement are the reasons I'm innocent (although it's a piece of the story!). But the Debtors are still withholding funds—see, e.g.,… https://t.co/MGcqjebNpz

— SBF (@SBF_FTX) November 6, 2025

During his trial, Bankman-Fried’s lawyers contested these claims, arguing that the government failed to prove intent. They emphasized that Bankman-Fried’s decisions were made under pressure and in response to a series of failures. Despite this, the jury found Bankman-Fried guilty on all counts, after deliberating for less than five hours.

Bankman-Fried’s Legal Team Fights for a New Trial

As the appeal progresses, Bankman-Fried’s legal team continues to argue for a new trial. They allege that Judge Kaplan’s actions during the trial negatively affected the fairness of the proceedings. In particular, they criticize the judge’s comments that appeared to undermine Bankman-Fried’s defense claims.

Shapiro, Bankman-Fried’s lead attorney, insisted that the government’s case relied more on emotion than evidence. She argued that Bankman-Fried’s decisions were influenced by the disarray of running a failing business, not a criminal intent. The legal team now seeks a retrial, which they believe could offer a more balanced opportunity for defense.

As the case unfolds, the details of the $40 million transfer continue to attract attention. ZachXBT’s revelations about the hidden transaction have added a new LAYER to the already complex legal battle facing Sam Bankman-Fried.

The unfolding legal drama and the allegations of bribery could have lasting implications for Bankman-Fried’s future. However, for now, the focus remains on the ongoing appeal and the investigation into the $40 million transfer.