Three former close associates testified as prosecution witnesses that Bankman-Fried had directed them to use FTX customer funds to plug losses at Alameda Research
The US Commerce Department action will follow its announcement last month adding five other Chinese entities to the blacklist over forced labour allegations in Xinjiang.
The new additions to Commerce Department's Entity List are part of the Biden administration's ongoing efforts to hold China accountable for human rights violations, the sources said.
The exact number of entities being added or their identities were not immediately known. Some companies from other countries are also set to be added to the blacklist as soon as Friday.
The White House declined to comment, while the Commerce Department did not immediately respond to a request for comment.