According to a statement published on Dec. 13, 2022, the U.S. Securities and Exchange Commission (SEC) has charged the disgraced FTX co-founder Sam Bankman-Fried (SBF) with defrauding investors. SEC chairman Gary Gensler explained that the U.S. financial regulator alleges that SBF “built a house of cards on a foundation of deception.”
U.S. SEC Contends Former FTX CEO SBF Committed Fraud, Crypto Firms Warned the ‘Sec’s Enforcement Division Is Ready to Take Action’
Following the arrest of the former FTX CEO Sam Bankman-Fried (SBF) in The Bahamas, the U.S. Securities and Exchange Commission (SEC) has revealed charges against the FTX co-founder. The SEC complaint contends that “Bankman-Fried orchestrated a years-long fraud to conceal from FTX’s investors” the undisclosed funneling of customer funds from FTX to Alameda Research. This includes providing Alameda “with a virtually unlimited ‘line of credit’ funded by the platform’s customers.”
In addition to the SEC, on Dec. 12, 2022, after SBF was arrested, a report detailed that the Southern District of New York (SDNY) prosecutors office and SDNY attorney Damian Williams have confirmed SBF was charged. The report noted that SBF’s charges included “wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.”
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY,” Williams disclosed on Twitter. “We expect to move to unseal the indictment in the morning and will have more to say at that time.” In the press release published by the SEC, chairman Gary Gensler explained that the U.S. regulator believes SBF is responsible for defrauding investors.
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” Gensler remarked in a statement.
“The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws,” Gensler continued. “Compliance protects both those who invest on and those who invest in crypto platforms with time-tested safeguards, such as properly protecting customer funds and separating conflicting lines of business. It also shines a light into trading platform conduct for both investors through disclosure and regulators through…
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